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?
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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F323e30fd-3289-42c6-b8a0-aa5fd5b5b320%2F0c4f3f83-8c7d-4a53-9dc7-420f746065e5%2F8yj6eq4_processed.jpeg&w=3840&q=75)
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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