JK Company Can Sell All of the Plush and Supreme

question 28

Multiple Choice

JK Company can sell all of the plush and supreme products it can produce,but it has limited production capacity.It can produce 4 plush units per hour or 2 supreme units per hour,and it has 2,000 production hours available.Contribution margin per unit is $214 for the plush product and $300 for the supreme product.What is the most profitable sales mix for JK Company?

• A)0 plush units and 4,000 supreme units.
• B)4,000 plush units and 4,000 supreme units.
• C)8,000 plush units and 0 supreme units.
• D)8,000 plush units and 4,000 supreme units.
• E)4,000 plush units and 2,000 supreme units.

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Definitions:

Amartya Sen

An Indian economist and philosopher, born in 1933, who is known for his work on welfare economics, social choice theory, and economic and social justice.

Famine

An extreme scarcity of food that leads to widespread hunger, malnutrition, and mortality in a population.

Inequality of Access

The uneven distribution of resources or opportunities to utilize services or goods among different populations or groups.

Total Fertility Rate

An estimate of the average number of children a woman will have over her reproductive lifetime.