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

question 155

True/False

A company sells two products with information as follows:
$$\begin{array} { | l | r | r | } \hline & \text { A } & \text { B } \\\hline \text { Sales price per unit } & \$ 15 & \$ 21 \\\hline \text { Variable cost per unit } & \$ 4 & \$ 13 \\\hline\end{array}$$ Products are made by machine.Four units of product A can be made with three machine hours and five units of product B can be made with 0.7 machine hour.If there are no constraints on production or sales of either product,then the company should emphasize sales of product B.

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Definitions:

Business Enterprise

An organization engaged in commercial, industrial, or professional activities, aiming to generate profits.

New Production Method

Innovations or improvements in the process of producing goods or services.

Technological Advance

Refers to the development and application of new technologies and innovation that improve processes, products, or services.

Independent Advance

Progress or development achieved through actions or efforts that are free from external control or influence.