Beauty Tools Corporation Makes and Sells Brushes and Combs

question 37

Multiple Choice

Beauty Tools Corporation makes and sells brushes and combs.It can sell all of either product it can make.The following data are pertinent to each respective product:

• A)320,000 brushes and 0 combs
• B)0 brushes and 800,000 combs
• C)160,000 brushes and 600,000 combs
• D)252,630 brushes and 252,630 combs

	Brushes	Combs
Units of output per machine hour	8	20
Selling price per unit	$12.00	$4.00
Product cost per unit
Direct material	$1.00	$1.20
Direct labor	2.00	0.10
Variable overhead	0.50	0.05

Total fixed overhead is $380,000.
The company has 40,000 machine hours available for production.What sales mix will maximize profits?

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Definitions:

Conflict

A situation or disagreement characterized by a clash of opposing interests, values, or needs.

Alternative Health Care

Health care practices and products that are not part of standard medical care, including various forms of herbal medicine, acupuncture, and chiropractic interventions.

Iatrogenesis

Harm or illness caused by medical treatment or procedures.

Medicalization

The process by which non-medical problems become defined and treated as medical issues.