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Pete's Sports Products Makes Caps and Uniforms

Question 55

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Pete's Sports Products makes caps and uniforms.It can sell all of either product it can make.The relevant data for these two products follows:
Pete's Sports Products makes caps and uniforms.It can sell all of either product it can make.The relevant data for these two products follows: Total fixed overhead is $240,000.The company has 100,000 machine hours available for production.The company should select which product to maximize operating profits? A) Uniforms,because its contribution margin per unit is $16. B) Uniforms,because its contribution margin per hour is $8. C) Caps,because its contribution margin per hour is $16 D) Caps,because its contribution margin per unit is $8.
Total fixed overhead is $240,000.The company has 100,000 machine hours available for production.The company should select which product to maximize operating profits?


A) Uniforms,because its contribution margin per unit is $16.
B) Uniforms,because its contribution margin per hour is $8.
C) Caps,because its contribution margin per hour is $16
D) Caps,because its contribution margin per unit is $8.

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