Respuesta :
The correct statement is :a.The company should produce 8000 units of Product A and 4800 units of Product B.
How to find the Production mix?
Product A
Contribution per machine -hour = Contribution per unit / Per unit labor hour required A
Contribution per machine -hour=$25-15/2 hours
Contribution per machine -hour= 5 per machine hour
Production mix  = 40,000 machine hours/ 5 per machine hour
Production mix  = 8,000 units
Product B
Production mix = [40,000 -( Â (8000 units x 2 machine hours)]
Production mix = [40,000 hours -16,000 hours] / 5 per machine hour
Production mix = 24,000 /5 per machine hour
Production mix  = 4,800 units
Therefore the correct option is A.
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The complete question is:
A company produces two products. Product A sells for $25, has variable costs of $15, requires 2 machine hours to produce, and the market is limited to 8,000 units. Product B sells for $35, has variable costs of $20, requires 5 machine hours to produce, and the market is limited to 6,000 units. 40,000 machine hours are available. Which statement is true?
a. The company should produce 8,000 units of Product A and 4,800 units of Products
b. The company should produce 6,000 units of Product B and 5.000 units of Product A
c. The best sales mix cannot be determined from the information given.
d. The company should produce 4,000 units of Product A and 3,000 units of Product B.