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QUESTION 41 Salem, Inc, makes two products. Each unit of Product A sells for $800, has $580 of variable costs, and takes 10 DLH to
QUESTION 41 Salem, Inc, makes two products. Each unit of Product A sells for $800, has $580 of variable costs, and takes 10 DLH to make. Each unit of Product B sells for $1,500, has $970 of variable costs, and takes 8 DLH to make. The firm has a production capacity of 5,000 DLH per month. If the firm can sell as many units of either product as it makes, what product mix would maximize the firm's operating income? A. 625 units of Product A and 500 units of Product B B. 500 units of Product A and 625 units of Product B O C.0 units of Product A and 625 units of Product B D.500 units of Product A and 0 units of Product B QUESTION 42 A firm is trying to decide whether to continue making a component or buying it from an outside supplier. Which of the following is NOT relevant for this decision? A. The outside supplier's ability to deliver the component on a timely basis B. The unavoidable fixed manufacturing costs associated with making the component The quality of the component purchased from the outside supplier D. The alternative uses of the facilities currently being used to make the component C
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