Kareem Industry produces three types of products: X, Y and Z. There is unlimited demand for the products throughout Southern Ontario. The following information is provided: X Y Z Unit selling price $60 $40 $20 Unit contribution margin $30 $20 $10 Processing time required per unit 1.25 hours 0.8 hours 0.5 hours Processing time is limited to 180 hours per month. What product mix should Kareem choose in order to maximize overall profit? Multiple Choice Produce 70 units of X, 70 units of Y and 70 units of Z Produce 144 units of X Produce 225 units of Y Produce 360 units of Z Produce 85 units of X and 40 units of Y
Kareem Industry produces three types of products: X, Y and Z. There is unlimited demand for the products throughout Southern Ontario. The following information is provided: X Y Z Unit selling price $60 $40 $20 Unit contribution margin $30 $20 $10 Processing time required per unit 1.25 hours 0.8 hours 0.5 hours Processing time is limited to 180 hours per month. What product mix should Kareem choose in order to maximize overall profit? Multiple Choice Produce 70 units of X, 70 units of Y and 70 units of Z Produce 144 units of X Produce 225 units of Y Produce 360 units of Z Produce 85 units of X and 40 units of Y
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Kareem Industry produces three types of products: X, Y and Z. There is unlimited demand for the products throughout Southern Ontario. The following information is provided:
|
X |
|
Y |
|
Z |
Unit selling price |
$60 |
|
$40 |
|
$20 |
Unit contribution margin |
$30 |
|
$20 |
|
$10 |
Processing time required per unit |
1.25 hours |
|
0.8 hours |
|
0.5 hours |
Processing time is limited to 180 hours per month. What product mix should Kareem choose in order to maximize overall profit?
Multiple Choice
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