Brooks Corporation Can Sell All the Units It Can Produce

question 6

Multiple Choice

Brooks Corporation can sell all the units it can produce of either Plain or Fancy but not both. Plain has a unit contribution margin of $72 and takes two machine hours to make and Fancy has a unit contribution margin of $90 and takes three machine hours to make. There are 2,400 machine hours available to manufacture a product. What should Brooks do?

• A) Make Fancy which creates $18 more profit per unit than Plain does.
• B) Make Plain which creates $6 more profit per machine hour than Fancy does.
• C) Make Plain because more units can be made and sold than Fancy.
• D) The same total profits exist regardless of which product is made.