Citrus Ltd What Are the Variable Costs Per Unit for a and Direct

question 10

Multiple Choice

Citrus Ltd. produces 2 products A and B, each requiring direct material and labour. Total labour available is 200 hours, and 300 pounds of material. Each unit of A sells for $10, and B sells for $15. Given the following linear programming information: $$\begin{array} { l l } \text { Maximise: } & \$ 4 \mathrm {~A} + \$ 5 \mathrm { Y } \\\text { Subject to: } & 3 \mathrm {~A} + 1 \mathrm {~B} ? 200 \\& 2 \mathrm {~A} + 2 \mathrm {~B} ? 300\end{array}$$ What are the variable costs per unit for A and B?

• A) $4 and $15
• B) $14 and $19
• C) $7 and $14
• D) $6 and $10

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