Bronski Corporation Manufactures Two Products,Simple and Complex Total Fixed Costs Are $18,000

question 100

Multiple Choice

Bronski Corporation manufactures two products,Simple and Complex.The following information was gathered:
$\begin{array}{lll}&\text { Simple }&\text { Complex }\\\text { Selling price per unit } & \$ 37.00 & \$ 26.00 \\\text { Variable cost per unit } & 32.00 & 22.00\end{array}$
Total fixed costs are $18,000.Assume demand for either product exceeds the factory's capacity.It takes one hour of production time to make Simple and two hours to make Complex.The annual capacity of the plant is 10,000 hours.How many units of Simple and Complex should Bronski Corporation produce and sell to maximize profits?

• A) 0 units of Simple and 5,000 units of Complex
• B) 6,000 units of Simple and 3,000 units of Complex
• C) 10,000 units of Simple and 0 units of Complex
• D) 3,000 units of Simple and 6,000 units of Complex

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