> Moving to another anston wil save ts response Queston 4 of 6 Question 4 points

Question

> Moving to another anston wil save ts response Queston 4 of 6 Question 4 points Save Answe Product A requires 5 machine hours per unit to be produced, Product B requires only 3 machne $16 per unit and has variable costs of $6 per unit compary should O Produce only Product A O Produce only Product B hours per unst, and the company's productive capacily is limsded to variable costs of 55 per unit Assuming the company can sell as many unts of esther product as d produces, the Prodact B solls for $12 per unt and has 240,000 machine hours Product A sells o Produce equal amounts of A and B Produce A and B in the ratio of 62 5% A to 375% B O podce A and B in the rato of 40% A and 60% B

Explanation / Answer

Answer A- contribution of product A per hour * total hours = (16-6)/10*240000=480000

Answer B- contribution of product B per hour * total hours = (12-5)/3*240000=560000

Answer C- Average contribution of product A & Bper hour * total hours = [(16-6)/10+ (12-5)/3]/2*240000=520000

Answer D- contribution of product A per hour * available hours + contribution of product B per hour * available hours = (16-6)/10*240000*62.5 % + (12-5)/3*240000*37.5% = 510000

Answer D- contribution of product A per hour * available hours + contribution of product B per hour * available hours = (16-6)/10*240000*40% + (12-5)/3*240000*60% = 528000

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