Examlex

Solved

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

question 14

Multiple Choice

A company sells two products with information as follows:
 A  B  Price per unit $12$22 Variable cost per unit $10$10\begin{array}{|l|l|l|} \hline & \text { A } & \text { B } \\\hline \text { Price per unit } & \$ 12 & \$ 22 \\\hline \text { Variable cost per unit } & \$ 10 & \$ 10\\\hline \end{array}

Products are made by machine.4 units of Product A can be made with one machine hour and 2 units of Product B can be made with one machine hour.The company has a maximum of 5000 machine hours available per month.Assume there are no constraints on sales of either product and the company could choose any product mix they wish.What is the maximum amount of contribution margin that the company could earn in a month?


Definitions:

Servomotor

A motor used for precise position control.

Fiberglass

A reinforced plastic material composed of glass fibers embedded in a resin matrix, known for its strength and durability.

Copper Rotor

A copper rotor is a component of an electric motor, where copper is used in the rotor windings due to its high electrical conductivity, improving motor efficiency.

Permanent Magnet Motors

Electric motors that use permanent magnets rather than electromagnets to generate the magnetic field required for rotation.

Related Questions