Question: i need help on this one (c) Fixed costs (d) Avoidable costs 17 AY0,000 Use the following information to answer Questions (4) and (5) fo,00
(c) Fixed costs (d) Avoidable costs 17 AY0,000 Use the following information to answer Questions (4) and (5) fo,00 A company produces two products, A and B. The company processes both products through the same machinery. Product A requires 5 machine hours per unit and Product B requires 3 hours of machine time per unit. The company's productive capacity is 240,000 machine hours. Product A sells for $16 per unit and its variable materials and labor cost is $6 per unit. Product B sells for $12 per unit and its variable materials and labor cost is $5 per unit. The company can sell as many units of either product as it can produce. (4) The company should: (a) produce both products in the following proportion: A-62.5%, B-37.5% (b) produce both products in the following proportion: A-40% , B-60% (c) produce equal amounts of A and B produce only Product B (e) produce only Product A (5) Assuming the company allocates all of its 240,000 hours of machine time to its highest and best use, the largest contribution margin the company will generate is: (a) $480,000 (b) $510,000 (c) $520,000 (d) $528,000 s560,000
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