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A Company Can Sell All the Units It Can Produce

Question 43

Multiple Choice

A company can sell all the units it can produce of either Product A or Product B but not both.Product A has a unit contribution margin of $16 and takes two machine hours to make and Product B has a unit contribution margin of $30 and takes three machine hours to make.If there are 3,000 machine hours available to manufacture a product, income will be


A) $6,000 more if Product A is made.
B) $6,000 less if Product B is made.
C) $6,000 less if Product A is made.
D) the same if either product is made.

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