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

question 178

Multiple Choice

Favata Corporation manufactures two products,AA and CC.The following information was available: $\begin{array}{lrr}&AA&CC\\\text { Selling price per unit } & \$ 37 & \$ 26 \\\text { Variable cost per unit } & 32 & 22 \\\text { Total fixed costs } & \$ 18,000\end{array}$ If Favata Corporation could produce and sell either 10,000 units of AA or 5,000 units of CC at full capacity,it should produce and sell ________.

• A) 10,000 units of AA and none of CC
• B) 3,000 units of CC and 6,000 units of AA
• C) 5,000 units of CC and none of AA
• D) 4,000 units of AA and 5,000 units of CC

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