Hilltop Company produces two products, Debit and Credit. Hilltop Company can sell all of the units it can produce for both products, but it has limited production capacity. Machine hours per unit are 0.25 hours for Debit and 0.50 hours for Credit, and the company has 3,500 machine hours available. Contribution margin per unit is $229 for Debit and $315 for Credit. What is the most profitable sales mix for Hilltop Company?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Hilltop Company produces two products, Debit and Credit. Hilltop Company can sell all of the units it can produce for both products, but it has
limited production capacity. Machine hours per unit are 0.25 hours for Debit and 0.50 hours for Credit, and the company has 3,500 machine
hours available. Contribution margin per unit is $229 for Debit and $315 for Credit. What is the most profitable sales mix for Hilltop Company?
Multiple Choice
7,000 Debit units and 3.500 Credit units
14,000 Debit units and 7,000 Credit units
O Debit units and 7,000 Credit units.
Transcribed Image Text:Hilltop Company produces two products, Debit and Credit. Hilltop Company can sell all of the units it can produce for both products, but it has limited production capacity. Machine hours per unit are 0.25 hours for Debit and 0.50 hours for Credit, and the company has 3,500 machine hours available. Contribution margin per unit is $229 for Debit and $315 for Credit. What is the most profitable sales mix for Hilltop Company? Multiple Choice 7,000 Debit units and 3.500 Credit units 14,000 Debit units and 7,000 Credit units O Debit units and 7,000 Credit units.
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