A Company Sells Two Products with Information as Follows

question 28

Multiple Choice

A company sells two products with information as follows: 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. Assume there are no constraints on sales of either product, and the company could choose any product mix they wish. What is the maximum amount of contribution margin that the company could earn in a month?

• A)$16,000
• B)$18,000
• C)$20,000
• D)$22,000

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Definitions:

Experimenter

An individual who conducts an experiment, typically a researcher or scientist, to test hypotheses and observe outcomes in a controlled setting.

Foot-in-the-door Technique

A persuasion strategy that involves getting a person to agree to a large request by first setting them up to agree to a modest request.

Persuasion

The act of convincing someone to do or believe something through reasoning or the use of emotional appeal.

Peripheral Arguments

Arguments that persuade by appealing to emotions or superficial associations rather than logic or reason.