1. A B Sale price per unit $12.00 $28.00 Variable cost per unit $10.00 $12.00 The products are machine made. Three units of product A can be made with one machine hour and two units of product B can be made with one machine hour. The company has maximum of 3,000 machine hours available per month. The company can sell up to 18,000 units of product A per month. And up to 3,000 units of product B for the month. What is the optimum product mix to maximize company's operating income? 1. 1,500 units of A and 60,000 units of B 2. Zero units of A and 3,000 units of B 3. 4,500 units of A and 3,000 units of B 4. 12,000 units of A and zero units of B
1. A B Sale price per unit $12.00 $28.00 Variable cost per unit $10.00 $12.00 The products are machine made. Three units of product A can be made with one machine hour and two units of product B can be made with one machine hour. The company has maximum of 3,000 machine hours available per month. The company can sell up to 18,000 units of product A per month. And up to 3,000 units of product B for the month. What is the optimum product mix to maximize company's operating income? 1. 1,500 units of A and 60,000 units of B 2. Zero units of A and 3,000 units of B 3. 4,500 units of A and 3,000 units of B 4. 12,000 units of A and zero units of B
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1.
A
B
Sale price per unit
$12.00 $28.00
Variable cost per unit
$10.00
$12.00
The products are machine made. Three units of product A can
be made with one machine hour and two units of product B
can be made with one machine hour.
The company has maximum of 3,000 machine hours available
per month. The company can sell up to 18,000 units of
product A per month. And up to 3,000 units of product B for
the month. What is the optimum product mix to maximize
company's operating income?
1. 1,500 units of A and 60,000 units of B
2. Zero units of A and 3,000 units of B
3. 4,500 units of A and 3,000 units of B
4. 12,000 units of A and zero units of B
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