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

question 98

Multiple Choice

A company sells two products with information as follows: $$\begin{array} { | l | r | r| } \hline & \mathrm { A } & \mathrm { B } \\\hline \text { Sales price per unit } & \$ 11.00 & \$ 20.00 \\\hline \text { Variable cost per unit } & \$ 10.00 & \$ 12.00 \\\hline\end{array}$$ The products are machine made. Four units of product A can be made with one machine hour, and two units of product B can be made with one machine hour. The company has a maximum of 3000 machine hours available per month. The company can sell up to 17,000 units of product A per month and up to 3000 units of product B for the month. What is the maximum amount of contribution margin that the company could earn in a month given the stated constraints?

• A) $17,000
• B) $30,000
• C) $6000
• D) $24,000

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Definitions:

Abducens Nerve

The sixth cranial nerve, responsible for controlling the lateral rectus muscle of the eye, which abducts the eyeball (moves it outward).

Sampling Distribution

The distribution pattern of probabilities for a certain statistic gathered from a random sample.

Population Means

The average value of a given characteristic within an entire population.

Independent Samples

Refers to two or more groups of data that are collected from distinct populations, where the observations in one group are not related to or influenced by the observations in the other group.