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A company sells two products with information as follows:
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 3,000 machine hours available per month.The company can sell up to 18,000 units of product A per month,and up to 3,000 units of product B for the month.What is the optimum product mix to maximize company's operating income?
Debt-Equity Ratio
A ratio indicating the finance strategy of mixing shareholders' equity and debt for asset acquisition.
Profit Margin
A financial performance metric that indicates the percentage of revenue that remains as profit after accounting for costs and expenses.
Sustainable Rate Of Growth
The maximum rate at which a company can grow its sales and earnings without increasing its financial leverage or debt.
Retention Ratio
The retention ratio is a financial metric indicating the percentage of a company's earnings that are not paid out as dividends but are reinvested back into the business.
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