Watson Corporation Manufactures Two Products, XX and YY Assume Watson Corporation Could Produce and Sell Any Mix of Was

Multiple Choice

Watson Corporation manufactures two products, XX and YY.The following information was gathered: $\begin{array}{lrr}&XX&YY\\\text { Selling price per unit } & \$ 47.00 & \$ 26.00 \\\text { Variable cost per unit } & 42.00 & 22.00\\\text { Total fixed costs }&\$18,000\end{array}$ Assume Watson Corporation could produce and sell any mix of product XX and YY at full capacity.If product XX takes 50% longer to manufacture as product YY and only 120,000 hours of plant capacity are available, it is best for Watson to produce _____.

A) only XX
B) either XX or YY, there is no difference
C) an equal number of XX and YY
D) only YY