Soap Company Manufactures Soap X and Soap Y and Can

question 88

Multiple Choice

Soap Company manufactures Soap X and Soap Y and can sell all it can make of either. Hours available to produce the products is the constrained resources.Based on the following data, which statement is true? $\begin{array}{|c|c|l|}\hline\mathrm{Y} & \mathrm{X}\\\hline \$ 25 & \$ 20 & \text { Sales Price } \\\hline 15 & 14 & \text { Variable Cost } \\\hline 5 & 3 & \text { Hours needed to process } \\\hline\end{array}$

• A) X is more profitable than Y.
• B) Y is more profitable than X.
• C) Neither X nor Y have a positive contribution margin.
• D) X and Y are equally profitable.

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