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:

Organic Reactions

Chemical reactions involving organic compounds, which are mainly composed of carbon atoms along with hydrogen, oxygen, nitrogen, and other elements.

Solvent

A substance capable of dissolving other substances (solutes) to form a solution, often used in chemical processes and industries.

Acetylene

The simplest alkyne, a hydrocarbon with carbon-carbon triple bonds, used as a fuel and a building block in chemical synthesis.

Ethene

A colorless flammable gas (C2H4), the simplest alkene, acting as a fundamental building block in the petrochemical industry.