Carla Vista Company is able to currently sell all of the units that it can produce of either A132 or B345. If Unit A132 has a unit contribution margin of $60 and it takes three machine hours to produce and Unit B345 has a unit contribution margin of $48 and takes two machine hours to produce. If Carla Vista Company has a constraint on machine hours, and currently has only 1440 machines of production time, which should Carla Vista produce to maximize the operating income of the company? O Make Unit B345 which creates $4 more profit per machine hour than Unit A132 does. The same total profits exist regardless of which product is made. O Make Unit B345 because more units can be made and sold than Unit A132. O Make Unit A132 which creates $12 more profit per unit than Unit B345 does.

Carla Vista Company is able to currently sell all of the units that it can produce of either A132 or B345. If Unit A132 has a unit contribution margin of $60 and it takes three machine hours to produce and Unit B345 has a unit contribution margin of $48 and takes two machine hours to produce. If Carla Vista Company has a constraint on machine hours, and currently has only 1440 machines of production time, which should Carla Vista produce to maximize the operating income of the company? O Make Unit B345 which creates $4 more profit per machine hour than Unit A132 does. The same total profits exist regardless of which product is made. O Make Unit B345 because more units can be made and sold than Unit A132. O Make Unit A132 which creates $12 more profit per unit than Unit B345 does.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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