Omega Company Reported the Following Information for the Company's Two

question 89

Multiple Choice

Omega Company reported the following information for the company's two products: Assume that 75,000 machine hours are available; product X takes 4 machine hours to produce, and product Y takes 2 machine hours to produce. The company can sell all it can make of either product. Which of the following statements is true?
$\begin{array}{|l|r|r|}\hline &{\text { Product X }} &{\text { Product Y }} \\\hline \text { Selling price per unit } & \$ 35 & \$ 25 \\\hline \text { Variable cost per unit } & 20 & 15 \\\hline\end{array}$

• A)Product Y should be produced because more of it can be produced.
• B)Product Y should be produced because it will produce greater total profit.
• C)Product X should be produced because it provides a greater contribution margin.
• D)Both products provide the same total profit.

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Definitions:

Fourteenth Amendment

Added to the U.S. Constitution in 1868, guaranteeing equal protection under the laws to all citizens and crucial in extending civil rights and liberties.

Birthright Citizenship

The legal principle which grants citizenship to individuals born within a country's territories, regardless of their parents' nationality.

Equal Protection

A principle under the Fourteenth Amendment of the U.S. Constitution which provides that no state shall deny to any person within its jurisdiction the equal protection of the laws.

Civil War

A war between citizens of the same country, often referred to specifically as the American Civil War which took place between 1861 and 1865 between the Northern Union and the Southern Confederacy.