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The Following Information Is Provided for Two Products Assume the Products Will Be Sold in a Store Where

Question 41

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The following information is provided for two products:  Product X  Product Y Selling price per unit $35$25 Variable cost per unit 2015\begin{array} { l c c } & \text { Product X } & \text { Product } Y \\\text { Selling price per unit } & \$ 3 5& \$ 2 5 \\\text { Variable cost per unit } &2 0& 15\end{array} Assume the products will be sold in a store where shelf space is a scarce resource and there is sufficient room for only one of the two products.Expected sales for Product X are 6,000 units,and expected sales for Product Y are 8,000 units.Which product should be sold and why?


A) Product Y should be sold solely because the expected demand for this product is greater than the expected demand for Product X.
B) Product Y should be sold because sales of this product will provide a greater profit.
C) Product X should be sold because it provides a greater contribution margin per unit.
D) Product X should be sold because sales of this product will provide a greater profit.

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