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

question 119

Multiple Choice

A company sells two products with information as follows: $$\begin{array} { | l | c | c | } \hline & \mathrm { A } & \mathrm { B } \\\hline \text { Sales price per unit } & \$ 11.00 & \$ 26.00 \\\hline \text { Variable cost per unit } & \$ 10.00 & \$ 10.00 \\\hline\end{array}$$ 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 4000 machine hours available per month.The company can sell up to 17,000 units of product A per month and up to 3000 units of product B for the month.What is the maximum amount of contribution margin that the company could earn in a month given the stated constraints?

• A) $17,000
• B) $58,000
• C) $10,000
• D) $48,000

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Definitions:

Sample

A subset of individuals or observations selected from a larger population for the purpose of statistical analysis.

Simplest Test

Often considered to be the one-sample t-test, it assesses whether the mean of a single sample differs from a known value.

17th Century

A historical period extending from the year 1601 to 1700, notable for significant developments in science, art, and politics.

Population

The entire group of individuals or instances about which scientists are interested and wish to draw conclusions in statistical studies.