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

question 127

Multiple Choice

A company sells two products with information as follows: $$\begin{array} { | l | r | r | } \hline & \mathrm { A } & \mathrm { B } \\\hline \text { Sales price per unit } & \$ 11.00 & \$ 22.00 \\\hline \text { Variable cost per unit } & \$ 10.00 & \$ 12.00 \\\hline\end{array}$$ 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 6,000 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?

• A)$7,000
• B)$48,000
• C)$18,000
• D)$30,000

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Definitions:

Cognitive Dissonance

The psychological discomfort experienced by an individual who holds two or more contradictory beliefs, values, or ideas simultaneously.

Zimbardo's Simulated Prison

An experiment conducted by psychologist Philip Zimbardo in 1971 to investigate the psychological effects of perceived power, focusing on the struggle between prisoners and prison officers.

Role Playing

A method or technique where individuals act out or perform the part of characters in particular scenarios, often used in training or therapy.

Social Norms

Shared guidelines or expected behaviors within a society or group, influencing individuals' actions and decisions.