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

question 38

Multiple Choice

A company sells two products with information as follows: $$\begin{array} { | l | r | r | } \hline & \mathrm { A } & \mathrm { B } \\\hline \text { Sales price per unit } & \$ 12.00 & \$ 24.00 \\\hline \text { Variable cost per unit } & \$ 10.00 & \$ 12.00 \\\hline\end{array}$$ 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 18,000 units of product A per month,and up to 3,000 units of product B for the month.What is the optimum product mix to maximize company's operating income?

• A)1,500 units of A and 72,000 units of B
• B)18,000 units of A and 3,000 units of B
• C)zero units of A and 3,000 units of B
• D)36,000 units of A and zero units of B

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Definitions:

False Hopes

Unfounded or unrealistic expectations that are unlikely to come to fruition.

Positive Language

The use of words and phrases that promote a constructive or optimistic outlook, often employed to encourage, motivate, or influence others positively.

Direct Opening

A communication approach where the main point or request is presented at the beginning of the message.

Positive Alternatives

Favorable or beneficial options presented in place of less desirable ones, often used in problem-solving or decision-making processes.