JK Company Can Sell All of the Plush and Supreme

question 28

Multiple Choice

JK Company can sell all of the plush and supreme products it can produce,but it has limited production capacity.It can produce 4 plush units per hour or 2 supreme units per hour,and it has 2,000 production hours available.Contribution margin per unit is $214 for the plush product and $300 for the supreme product.What is the most profitable sales mix for JK Company?

• A)0 plush units and 4,000 supreme units.
• B)4,000 plush units and 4,000 supreme units.
• C)8,000 plush units and 0 supreme units.
• D)8,000 plush units and 4,000 supreme units.
• E)4,000 plush units and 2,000 supreme units.

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Definitions:

Customers

individuals or entities that purchase goods or services from a business or seller.

Repeat Business

The act of a customer returning to purchase goods or services from a business after their initial transaction.

Photograph

An image created by capturing light on a photosensitive surface such as film or a digital sensor.

Revise Their Choice

The act of reconsidering and potentially altering one's decision based on new information or reflection.