Elliot Company Can Sell All of Its Products a and Z

question 23

Multiple Choice

Elliot Company can sell all of its products A and Z that it can produce, but it has limited production capacity. It can produce 8 units of A per hour or 10 units of Z per hour, and it has 20,000 production hours available. Contribution margin per unit is $12 for A and $10 for Z. What is the most profitable sales mix for Elliot Company?

• A) 84,000 units of A and 60,000 units of Z.
• B) 0 units of A and 200,000 units of Z.
• C) 48,000 units of A and 80,000 units of Z.
• D) 120,000 units of A and 0 units of Z.
• E) 60,000 units of A and 100,000 units of Z.

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