A Company Can Sell All the Units It Can Produce

question 43

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 3,000 machine hours available to manufacture a product, income will be

• A)$6,000 more if Product A is made.
• B)$6,000 less if Product B is made.
• C)$6,000 less if Product A is made.
• D)the same if either product is made.

---

Definitions:

Invest

To allocate resources, typically money, in the expectation of generating an income or profit.

Variance

A statistical measure that represents the dispersion of a dataset relative to its mean, indicating how spread out the data points are.

Coefficient Of Correlation

A numerical measure that quantifies the strength of the correlation between the relative variations of two variables.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual, exchange-traded, and closed funds.