Jayleen Company makes two products: Carpet Kleen and Floor Deodorizer. Operating information from the previous year follows. Carpet Kleen Floor DeodorizerUnits produced and sold 5,000 4,000 Machine hours used 5,000 2,000 Sales price per unit$7 $10 Variable cost per unit$4 $8 Fixed costs of $20,000 per year are presently allocated equally between both products. If the product mix were to change, total fixed costs would remain the same.Assuming there is unlimited demand for both products and Jayleen has 10,000 machine hours available, how many units of each product should be produced and sold? Carpet KleenFloor DeodorizerA.0 units0 unitsB.0 units20,000 unitsC.5,000 units10,000 unitsD.8,000 units4,000 unitsE.10,000 units0 units
A. Choice A
B. Choice B
C. Choice C
D. Choice D
E. Choice E
Answer: B
You might also like to view...
Which of the following is NOT a change in accounting principle?
a. A change from FIFO to LIFO for inventory valuation b. A change from eight years to five years in the useful life of a depreciable asset c. A change from completed-contracts to percentage-of-completion d. A change from double-declining-balance to straight-line depreciation
The least tangible type of service is _____ services
a. regulated goods b. nongoods c. owned-goods d. rented-goods
What actions did the Stevens-Henager employees take prior to leaving for their new jobs at Eagle Gate College?
a. Copied documents to take with them to a competing college b. Copied marketing plans to take with them to a competing college c. Sabotaged Stevens-Henager's leads list d. Both a and c
The difference between the number of days resources are tied up in the operating cycle and the number of days a firm can use spontaneous financing before payment is made is the ________
A) cash conversion cycle B) average payment period C) operating cycle D) average age of inventory