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mezya [45]
3 years ago
6

Product A requires 5 machine hours per unit to be produced, Product B requires only 3 machine hours per unit, and the company's

productive capacity is limited to 240,000 machine hours. Product A sells for $16 per unit and has variable costs of $6 per unit. Product B sells for $12 per unit and has variable costs of $5 per unit. Assuming the company can sell as many units of either product as it produces, the company should:
Produce only Product A.
Produce only Product B.
Produce equal amounts of A and B.
Produce A and B in the ratio of 62.5% A to 37.5% B.
Produce A and B in the ratio of 40% A and 60% B.
Mathematics
1 answer:
Lesechka [4]3 years ago
5 0

Answer:

  Produce only Product B.

Step-by-step explanation:

The contribution margin per machine hour for product A is ...

  ($16 -$6)/(5 hour) = $2 per hour

The contribution margin per machine hour for product B is ...

  ($12 -$5)/(3 hour) ≈ $2.33 per hour

The company should produce the maximum possible number of the product that contributes the most per machine hour: Product B.

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Answer:

x = \frac{k + c}{4}

Step-by-step explanation:

<em><u>Given:</u></em>

4x - c = k

<em><u>Solve for:</u></em>

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<em><u>Solution:</u></em>

(1) Let's move all of components that do not contain x (our target) to the right side (notice the change of sign of c from negative to positive):

4x = k + c

(2) Let's divide both sides of equation by 4:

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(3) Now, we simplify the left side:

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