Question

Elliot Company can sell all of its products A and Z that it can produce, but it has limited production capacity. It can produce 8 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 Elliot 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.

Answer

This answer is hidden. It contains 273 characters.