Product X Requires 10 Machine Hours Per Unit to Be

question 80

Multiple Choice

Product X requires 10 machine hours per unit to be produced,Product Y requires only 6 machine hours per unit,and the company's productive capacity is limited to 240,000 machine hours.Product A sells for $32 per unit and has variable costs of $12 per unit.Product B sells for $24 per unit and has variable costs of $7 per unit.Assuming the company can sell as many units of either product as it produces,the company should:

• A) Produce only Product X.
• B) Produce only Product Y.
• C) Produce equal amounts of X and Y.
• D) Produce X and Y in the ratio of 62.5% X to 37.5% Y.
• E) Produce X and Y in the ratio of 40% X and 60% Y.

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Definitions:

Knights of Labor

A leading 19th-century American labor organization that aimed to protect the rights of workers, advocating for economic and social reforms.

Economic Inequality

The unequal distribution of wealth, income, and opportunities among individuals or groups within a society.

Chinese Immigrants

People hailing from China who move to another country, historically significant for their roles in the labor force during the development of the American West in the 19th century.

Dawes Act

An 1887 law that aimed to assimilate Native Americans into American society by distributing reservation land to individual owners.