Test: Wek #3 Chapter lest This 1 pt 8 of 16 (0 This Test: 16 pts possible Simple

Question

Test: Wek #3 Chapter lest This 1 pt 8 of 16 (0 This Test: 16 pts possible Simple $37.00 32.00 26.00 22.00 and two hours to Total fixed costs are $18,000. Assume demand for either product exceeds the factory's capacity. I takes one hour of production time to make Simple make Complex. The annual capacity of the plant is 10,000 hours. How many units of Simple and Complax should Bronski Corporation produce and sell to maximize O A. 3,000 units of Simple and 6,000 units of Complex O B. 6,000 units of Simple and 3,000 units of Complex O c. 10,000 units of Simple and 0 units of Complex 0 D. 0 units of Simple and 5,000 units of Complex Click to select your answer

Explanation / Answer

Calculate contribution margin per hour :

So in 10000 hour company should manufacture simple 10000 units

so answer is c) 10000 units of simple and 0 units of complex

Simple Complex Selling price per unit 37 26 Variable cost per unit 32 22 Contribution margin per unit 5 4 Labour hour per unit 1 2 Contribution margin per hour 5 2 Rank 1 2

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