Omega Company Reported the Following Information for the Company's Two

question 19

Multiple Choice

Omega Company reported the following information for the company's two products: $\begin{array}{|l|c|c|}\hline & \text { Product } \mathrm{X} & \text { Product Y } \\\hline \text { Selling price per unit } & \$ 35 & \$ 25 \\\hline \text { Variable cost per unit } & 20 & 15 \\\hline\end{array}$ Assume that 75,000 machine hours are available;product X takes 4 machine hours to produce,and product Y takes 2 machine hours to produce.The company can sell all it can make of either product.Which of the following statements is

• A) Product Y should be produced because more of it can be produced.
• B) Product Y should be produced because it will produce greater total profit.
• C) Product X should be produced because it provides a greater contribution margin.
• D) Both products provide the same total profit.

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