1. A company can sell all the units it can produce of either Product A or Produc

Question

1. A company can sell all the units it can produce of either Product A or Product B but not both. Product A has a unit contribution margin of $32 and takes two machine hours to make and Product B has a unit contribution margin of $60 and takes three machine hours to make. If there are 1,000 machine hours available to manufacture a product, income will be A: the same if either product is made. B:$4,000 more if Product A is made. C:$4,000 less if Product B is made. D: $4,000 less if Product A is made

Explanation / Answer

Cont. from A in 1000 hrs 16000 Cont. from B in 1000 hrs 20000 Thus, D is the answer ie 1000 less if A is made Please consider the time devoted to make this reply by rating this as 5 star. Thank u in advance. God bless u :)

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