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Super Company Manufactures Two Products, a and B Assume Super Company Could Produce and Sell Any Mix of Was

Question 109

Multiple Choice

Super Company manufactures two products, A and B.The following information was gathered:  A  B  Selling price per unit $54.00$66.00 Variable cost per unit 39.0054.00 Total fixed costs $30,000\begin{array} { l c c } & \text { A } & \text { B } \\\text { Selling price per unit } & \$ 54.00 & \$ 66.00 \\\text { Variable cost per unit } & 39.00 & 54.00 \\& & \\\text { Total fixed costs } & & \$ 30,000\end{array} Assume Super Company could produce and sell any mix of products A and B at full capacity.If product A takes twice as long to manufacture as product B and only 120,000 hours of plant capacity are available, it is best for Super Company to produce _____.


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

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