LeBron Corporation Manufactures Two Products, XX and YY If LeBron Corporation Could Produce and Sell Either 10,000 Units

question 100

Multiple Choice

LeBron Corporation manufactures two products, XX and YY.The following information was gathered: $$\begin{array} { l c r } & \mathrm { XX } & \mathrm { YY } \\\text { Selling price per unit } & \$ 37.00 & \$ 26.00 \\\text { Variable cost per unit } & 32.00 & 22.00 \\\text { Total fixed costs } & { \$ 18,000 }\end{array}$$ If LeBron Corporation could produce and sell either 10,000 units of XX or 5,000 units of YY at full capacity, it should produce and sell _____.

• A)5,000 units of YY and none of XX
• B)3,000 units of YY and 6,000 units of XX
• C)10,000 units of XX and none of YY
• D)either XX or YY because LeBron is indifferent to whether XX or YY is produced

---

Definitions:

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s, in response to the Great Depression.

Marble Cake Federalism

A model of federalism where government functions and responsibilities are intermixed among the national, state, and local governments, in contrast to clearly divided layers or levels.

Intergovernmental Cooperation

The process and practice of different levels of government (local, regional, national) working together to solve problems and implement policies.

Unfunded Mandate Reform Act

A 1995 United States federal law aimed at limiting the number and cost of federal mandates imposed on state and local governments and private sector businesses.