Sherman Company Can Sell All of Its Products a and Z

question 8

Multiple Choice

Sherman Company can sell all of its products A and Z that it can produce, but it has limited production capacity. It can produce 6 units of A per hour or 10 units of Z per hour, and it has 20,000 production hours available. Contribution margin per unit is $12 for A and $10 for Z. What is the most profitable sales mix for this company?

• A) 84,000 units of A and 60,000 units of Z.
• B) 48,000 units of A and 80,000 units of Z.
• C) 60,000 units of A and 100,000 units of Z.
• D) 120,000 units of A and 0 units of Z.
• E) 0 units of A and 200,000 units of Z.

---

Definitions:

Hypothalamus

A region of the brain that plays key roles in controlling hunger, thirst, temperature, and other autonomic nervous system functions.

Pons

A structure located in the brainstem, critical for regulating breathing, relaying signals from the forebrain to the cerebellum, and for sleep and arousal.

Split Brain

A condition resulting from surgery that separates the brain's two hemispheres, affecting transfer of information.

Corpus Callosum

The large band of neural fibers connecting the two hemispheres of the brain, facilitating communication between them.