Question
The Mixed-Up Floor Co. Ltd makes two products, carpet polish and floor deodoriser. Operating information from the previous year is as follows: Carpet polish Floor
The Mixed-Up Floor Co. Ltd makes two products, carpet polish and floor deodoriser. Operating information from the previous year is as follows:
Carpet polish | Floor deodoriser | |
Sales price per unit | $7.00 | $10.00 |
Variable cost per unit | $4.00 | $8.00 |
Units produced and sold | 5,000 | 4,000 |
Machine hours used | 5,000 | 2,000 |
Assuming an unlimited amount of each product can be sold, how many units of each product should be produced and sold if machine hours are limited to 20,000?
Select one:
a.
10,000 units of car polish and 0 units of floor deoderiser
b.
5,000 units of car polish and 10,000 units of floor deoderiser
c.
8,000 units of car polish and 4,000 units of floor deoderiser
d.
0 units of car polish and 40,000 units of floor deoderiser
e.
0 units of car polish and 0 units of floor deoderiser
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