The Same Constrained Resource Is Used by Four Different Products

question 76

Multiple Choice

The same constrained resource is used by four different products at Rodrigez Corporation.Data concerning those products appear below: $\begin{array}{c}\begin{array}{l}\\ \text { Unit selling price................... } \\ \text { Unit variable cost......................... } \\ \text {Amount of the constrained resource required...... } \\\end{array}\begin{array}{rrrr}Z 100 & Z 200 & Z 300 & Z 400 \\\$ 31.80 & \$ 29.60 & \$ 15.90 & \$ 35.80 \\\$ 15.90 & \$ 6.80 & \$ 3.00 & \$ 24.30 \\0.44 & 0.34 & 0.28 & 0.53\end{array}\end{array}$ The company does not have enough of the constrained resource to satisfy for demand of all four products.From the standpoint of the entire company,if it is a choice between sales of one unit of one product versus another,which product should the salespersons emphasize?

• A)Z300
• B)Z400
• C)Z200
• D)Z100

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Definitions:

Capital Asset

Property owned for investment or personal use, excluding inventory or assets sold as part of a business's regular operations.

Guaranteed Payment

Payments made to partners in a partnership regardless of the partnership's income, often for services rendered or for the use of capital.

Separately Stated Item

Items on a partnership or S corporation tax return that are listed separately to ensure proper tax treatment at the individual level.

Ordinary Expense

In tax terminology, ordinary expense refers to any expense common and accepted in your trade or business operation.