A Company Can Sell All the Units It Can Produce

question 36

Multiple Choice

A company can sell all the units it can produce of either Product A or Product B but not both.Product A has a unit contribution margin of $16 and takes two machine hours to make and Product B has a unit contribution margin of $30 and takes three machine hours to make.If there are 5,000 machine hours available to manufacture a product, income will be

• A)$10,000 more if Product A is made.
• B)$10,000 less if Product B is made.
• C)$10,000 less if Product A is made.
• D)the same if either product is made.

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Definitions:

Plant Pollination

The transfer of pollen from a male structure to a female structure in plants, enabling fertilization and the production of seeds.

Service

The action of helping or doing work for someone or offering intangible products to customers.

Population

The total number of individuals inhabiting a particular territory or area, often analyzed in terms of density, distribution, and growth rates.

Individuals

Single organisms of a particular species, considered separately from their population or community.