A Company Sells Two Products with Information as Follows Products Are Made by Machine

question 133

Multiple Choice

A company sells two products with information as follows:
$$\begin{array} { | l | r | r | } \hline & { \text { A } } & { \text { B } } \\\hline \text { Price per unit } & \$ 10.00 & \$ 16.00 \\\hline \text { Variable cost per unit } & \$ 8.00 & \$ 11.00 \\\hline\end{array}$$
Products are made by machine. 4 units of Product A can be made with one machine hour and 2 units of Product B can be made with one machine hour. The company has a maximum of 2,000 machine hours available per month.
-The company can sell up to 5,000 units of Product A per month, and up to 2,000 units of Product B for the month. What is the optimum product mix given the stated constraints?

• A) 2,000 units of A, 4,000 units of B
• B) 4,000 units of A, 2,000 units of B
• C) Zero units of A, 4,000 units of B
• D) 6,000 units of A, zero units of B

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Definitions:

Virtual Negotiation

The process of discussing and arriving at a mutual agreement through electronic means, without meeting in person.

Virtual Communication

Exchanging information and ideas through electronic means without physical presence.

Deceptive Tactics

Involves the employment of strategies designed to mislead, trick, or manipulate others for a perceived benefit.

Withholding Information

The act of intentionally not sharing relevant or necessary information with others who might benefit from knowing it.