Elliot Company Can Sell All of Its Products a and Z

question 49

Multiple Choice

Elliot Company can sell all of its products A and Z that it can produce,but it has limited production capacity.It can produce 8 units of A per hour or 10 units of Z per hour,and it has 20,000 production hours available.Contribution margin per unit is $12 for A and $10 for Z.What is the most profitable sales mix for Elliot Company?

• A)84,000 units of A and 60,000 units of Z.
• B)48,000 units of A and 80,000 units of Z.
• C)60,000 units of A and 100,000 units of Z.
• D)120,000 units of A and 0 units of Z.
• E)0 units of A and 200,000 units of Z.