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

question 118

Multiple Choice

A company sells two products with information as follows:  A  B  Price per unit $12$20 Variable cost per unit $10$12\begin{array}{|l|r|r|} \hline&{\text { A }} &{\text { B }} \\\hline \text { Price per unit } & \$ 12 & \$ 20 \\\hline \text { Variable cost per unit } & \$ 10 & \$ 12 \\\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 3,000 machine hours available per month.
- The company can sell up to 7,000 units of Product A per month, and up to 3,000 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?


Definitions:

Describing Behavior

The process of detailing and explaining actions or reactions of individuals or groups in response to their environment or stimuli.

Predicting Behavior

The process of forecasting future actions or responses of individuals or systems based on observed patterns or data analysis.

Controlling Behavior

A pattern where an individual seeks to dominate others' decisions and actions, often undermining their autonomy and self-esteem.

Prognosis

A forecast or prediction about the likely outcome or course of a disease, condition, or the likelihood of recovering from it.

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