Question
The Winwood Company manufactures two products: Q and T. The costs and revenues are as follows: Product Q Product T Sales price $ 160.00 $
| The Winwood Company manufactures two products: Q and T. The costs and revenues are as follows: |
| Product Q | Product T | |||
| Sales price | $ | 160.00 | $ | 98.00 |
| Variable cost per unit | 85.00 | 47.00 | ||
| Total demand for Product Q is 15,000 units and for Product T is 10,000 units. Machine time is a scarce resource. During the year, 55,000 machine hours are available. Product Q requires 5.00 machine hours per unit, while Product T requires 3.00 machine hours per unit. |
| How many units of Products Q and T should Winwood produce? |
| Product Q | Product T | |
| a. | 15,000 | 0 |
| b. | 8,807 | 4,654 |
| c. | 11,800 | 0 |
| d. | 5,000 | 10,000 |
a
b
d
c
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Governmental Accounting Auditing And Financial Reporting
Authors: Michele Mark Levine, Todd Buikema
10th Edition
0891250107, 978-0891250104
