The Winwood Company manufactures two products: Q and T. The costs and revenues a

Question

The Winwood Company manufactures two products: Q and T. The costs and revenues are as follows:

Total demand for Product Q is 15,000 units and for Product T is 10,000 units. Machine time is a scarce resource. During the year, 55,000 machine hours are available. Product Q requires 5.00 machine hours per unit, while Product T requires 3.00 machine hours per unit.

How many units of Products Q and T should Winwood produce?

a

b

d

c

The Winwood Company manufactures two products: Q and T. The costs and revenues are as follows:

Explanation / Answer

prouct Q product T sales price 160 98 Variable cost per unit 85 47 Contribution margin per unit 75 51 machine hours 5 3 contribution margin per hr 15 17 rank 2 1 product T 10,000*3= 30,000 hrs product Q 5000*5= 25,000 55,000 answer option d product Q 5000 units product T= 10,000 units

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