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Suppose Moorehead has only 100,000 machine hours that can be made available to produce additional units of XY-7 and BD- 4 If the company only can one product,the price is 30 35 ,variable cost 10 15 , 4 and 5 hours is needed for XY-7 and BD- 4 ,which product shall be produced ?
A. Product XY-7 should be produced, yielding a contribution margin of $500000. B. Product XY-7 should be produced, yielding a contribution margin of $400000. C. Product BD-4 should be produced, yielding a contribution margin of $500000. D. Product BD-4 should be produced, yielding a contribution margin of $250,000. |