Favata Corporation Manufactures Two Products,AA and CC If Favata Corporation Could Produce and Sell Either 10 000

question 139

Multiple Choice

Favata Corporation manufactures two products,AA and CC.The following information was available:
$$\begin{array} { l c r } & \text { AA } & \text { CC } \\\text { Selling price per unit } & \$ 37 & \$ 26 \\\text { Variable cost per unit } & 34 & 21 \\& & \\\text { Total fixed costs } & \$ 18000\end{array}$$
If Favata Corporation could produce and sell either 10 000 units of AA or 5000 units of CC at full capacity,it should produce and sell:

• A)10 000 units of AA and none of CC
• B)5000 units of CC and none of AA
• C)3000 units of CC and 6000 units of AA
• D)4000 units of AA and 5000 units of CC