Wakeman Products Inc

question 53

Multiple Choice

Wakeman Products Inc. makes two products-W28H and Z28D. Product W28H's selling price is $27.00 and its unit variable cost is $21.60. Product Z28D's selling price is $170.00 and its unit variable cost is $153.00. The monthly demand is 2,030 units for product W28H and 730 units for Z28D. The constrained resource is a particular machine that is available for 9,500 minutes each month. Each unit of product W28H requires 3 minutes on this machine and each unit of product Z28D requires 10 minutes on this machine.
-How many units of product Z28D should be produced each month?

• A) 341
• B) 730
• C) 0
• D) 1,339

---

Definitions:

Net Income

The ultimate profit of a company calculated by removing all operational costs, taxes, and expenses from its gross income.

Financial Accounting Standards

Rules and guidelines developed by authoritative entities to govern how financial statements should be prepared and presented.

IASB

The International Accounting Standards Board, an independent body that develops and approves International Financial Reporting Standards (IFRS).

AICPA

The American Institute of Certified Public Accountants, a professional organization for certified public accountants in the United States.