A Company Sells Two Products with Information as Follows

question 132

Multiple Choice

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 5,000 machine hours available per month.The company can sell up to 17,000 units of product A per month and up to 3,000 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)$34,000
• B)$58,000
• C)$28,000
• D)$30,000

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Definitions:

Flexibility

The willingness and ability to adapt to new circumstances or to changes in one's environment.

Risk Taking

The act of engaging in actions that involve uncertainty or danger with the potential for positive outcomes.

Intellectual Characteristic

A trait or feature relating to the intellect, such as analytical thinking, creativity, or knowledgeability.