1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Viktor [21]
3 years ago
7

A company has three products possible products that it can produce in a machine intensive production process. Capacity is constr

ained by the number of hours the machines can run during a period and the products are so popular that all units produced will be sold. Here is additional information:
​ Product A Product B Product C
Contribution per unit $20 $30 $40
Machine hours per unit 2.5 3.25 4.5
Which of the following would be an accurate conclusion based on these facts?

A. Since Product C has the greatest contribution margin per unit and therefore emphasizing its production and sales will lead to the highest operating income in the short-run

B. Since A takes less time to produce, maximization of operating income will occur by emphasizing production and sales of A.

C. A balanced mix of 1/3 A, 1/3 B, and 1/3 C should be the goal when maximizing operating income in the short-run.

D. Product B should be emphasized if the goal is to maximize contribution margin.
Business
1 answer:
disa [49]3 years ago
3 0

Answer:

D

Explanation:

                                          A             B             C

Contribution per unit      20          30           40

Machine hours per unit  2.5          3.25       4.5

Contribution per hour     8             9.23       8.89

Product B has the highest contribution per hour .

It is stated that the capacity is constrained by the number of hours the machine can run during a period . and all products produce will be sold. This has made the machine hour the determinant factor in the situation.

Therefore product B should be emphasized if the goal is to maximize contribution margin.

You might be interested in
In the business world, you need this trait so you can stay ahead of the competition. independence risk-taking self-assurance con
lesya692 [45]

Answer:

oi

Explanation:

hi how are you feeling today

8 0
2 years ago
What is time utility and possession utility?
Pie

Answer: The four types of economic utility are form, time, place and possession. "Utility" in this context refers to the value, or usefulness, that a purchaser receives in return for exchanging his money for a company's goods or services.

4 0
2 years ago
Read 2 more answers
Identify the features of stocks and bonds
ch4aika [34]

Explanation:

How to "buy at wholesale, sell at retail" like financial institutions

How to navigate today's increasingly volatile markets and manage risk

Common mistakes of the novice investor and how to reduce them

How you can time the market by waiting for opportunity to come to you

A rules-based strategy for trading in any market and any asset class

3 0
3 years ago
Federal antitrust statutes are complex, but the basic goal is straightforward: to prevent a major industry from being so dominat
wolverine [178]

Answer:

Many observer says it does

Explanation:

This is because certain or few group of owners would dominate the industry and also won it, they would control how new owners enter into the game

6 0
3 years ago
On Jordan's 20th birthday he decides to invest 10,000 that he has saved. He will not be adding any money to the initial investme
levacccp [35]

Answer:

452592.56

Explanation:

10000(1.1)^40=452592.555682

7 0
3 years ago
Other questions:
  • Tennot Inc. sells used cars. It focuses solely on low-income customers who prefer to buy a used car rather than a new one. There
    13·1 answer
  • A natural history museum borrows $2,000,000 at simple annual interest to purchase new exhibits. some of the money is borrowed at
    5·1 answer
  • Which of these occupations is INCORRECTLY paired with the level of education required? A) Welder→ Bachelor's degree B) Teacher→
    11·2 answers
  • Ruiz co. provides the following sales forecast for the next four mounths. The company wants to end each month with ending finish
    5·1 answer
  • lila gallo borrowed $10000 from her bank to build up the inventory of her stationery store. the loan was payable in six months a
    6·2 answers
  • A loan is borrowed money that must be returned. True or False?
    5·1 answer
  • Gary and Diane must prepare a presentation for their marketing class. As part of their presentation, they must do a series of ca
    14·1 answer
  • Paola and Isidora are married; file a joint tax return; report modified AGI of $148,000; and have one dependent child, Dante. Th
    5·1 answer
  • Because it is needed for the schedule of expected cash collections, the annual master budget file includes the.
    9·1 answer
  • As of late, US antitrust regulators begin their examination of a merger by using statistical tools and real-world evidence to __
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!