Super Company Manufactures Two Products, a and B Assume Super Company Could Produce and Sell Any Mix of Was

question 109

Multiple Choice

Super Company manufactures two products, A and B.The following information was gathered: $$\begin{array} { l c c } & \text { A } & \text { B } \\\text { Selling price per unit } & \$ 54.00 & \$ 66.00 \\\text { Variable cost per unit } & 39.00 & 54.00 \\& & \\\text { Total fixed costs } & & \$ 30,000\end{array}$$ Assume Super Company could produce and sell any mix of products A and B at full capacity.If product A takes twice as long to manufacture as product B and only 120,000 hours of plant capacity are available, it is best for Super Company to produce _____.

• A)only A
• B)either A or B, there is no difference
• C)an equal number of A and B
• D)only B