Required Question: If Auto Company wants to maintain product mix in the budget, and given the machine minutes constraint and the sales constraint for Trucks and Cars, what is the maximum number of units of each prodcut that the company should sell and what would be the expected total income? Auto Company produces two products, Trucks and Cars. The following table providesinformation about the two products and budget sales for the upcoming year. Auto Companykeeps no finished inventory, so production equals sales.Maximum Unit SalesPlanned Unit SalesPrice Per UnitVariable Cost perUniteFixed CostsMachine Capacity(Minutes)Trucks160,000140,000$25.00$15.00Machine Minutes per 9UnitCars130,000110,000$40.00$25.0014Total290,000250,000$2,000,0003,000,000

Variable costs are those costs which changes with change in level of costs. Fixed costs do not…

Required Question: If Auto Company wants to maintain product mix in the budget, and given the machine minutes constraint and the sales constraint for Trucks and Cars, what is the maximum number of units of each prodcut that the company should sell and what would be the expected total income?

Required Question: If Auto Company wants to maintain product mix in the budget, and given the machine minutes constraint and the sales constraint for Trucks and Cars, what is the maximum number of units of each prodcut that the company should sell and what would be the expected total income?

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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