A company sells two products with information as follows: Sales price per unit Variable cost per unit A B $12.00 $10.00 $26.00 $12.00 The products are machine made. Four 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 a maximum of 4,000 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 the company's operating income? OA. 20,000 units of A and zero units of B OB. zero units of A and 3,000 units of B OC. 10,000 units of A and 3,000 units of B OD. 1,500 units of A and 62,000 units of B
A company sells two products with information as follows: Sales price per unit Variable cost per unit A B $12.00 $10.00 $26.00 $12.00 The products are machine made. Four 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 a maximum of 4,000 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 the company's operating income? OA. 20,000 units of A and zero units of B OB. zero units of A and 3,000 units of B OC. 10,000 units of A and 3,000 units of B OD. 1,500 units of A and 62,000 units of B
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2CE
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