Suzy Co Produces and Sells Three Products (X, Y, and Z)

question 76

Multiple Choice

Suzy Co. produces and sells three products (X, Y, and Z) . The following data relate to the three products: $\begin{array}{lrrrrr}&X&Y&Z\\\text { Demand in units } & 160 & 150 & 140 \\\text { Selling price per unit } & \$ 130 & \$ 160 & \$ 150 \\\text { Raw materials costs per unit } & \$ 65 & \$ 80 & \$ 90 \\\text { Labor time in minutes per unit } & 10 & 20 & 10\end{array}$ Which is the most profitable product if there is no constraint on labor time?

• A) Product X.
• B) Product Y.
• C) Product Z.
• D) More than one of the products has equal total throughput margin per labor minute.
• E) There isn't enough information to answer the question.

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Definitions:

Deductive Arguments

A form of reasoning where the conclusion is logically derived from premises; if the premises are true, the conclusion must be true.

Inductive Arguments

Reasoning that moves from specific observations to broader generalizations and theories, often involving probability rather than certainty.

Cause of Action

A set of facts sufficient to justify a right to sue to obtain money, property, or the enforcement of a right against another party.

Argument from Design

A philosophical argument for the existence of God, suggesting that the complexity of the universe demonstrates the presence of a designer.