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:

Critical Thinking

The process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and evaluating information to reach a conclusion.

Objective Judgments

involve making decisions or forming opinions based on unbiased facts and without the influence of personal feelings or prejudices.

Critical Thinking

The intellectually disciplined process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and evaluating information to reach a conclusion.

Well-supported Reasons

Arguments or justifications that are backed by solid evidence or logic.