Consider the following production and cost data for two products, Big and Little: Big Little Demand in units 10,000 15,000 Contribution margin per unit $24 $18 Machine-hours needed per unit 4 MH 2 MH Labor hours needed per unit 6 DLH 4 DLH The company has 40,000 machine hours available each period. What is the maximum number of Bigs that should be made each period? O 10,000 O2,500 O 5,500

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Consider the following production and cost data for two products, Big and Little:
Big
Little
Demand in units
10,000
15,000
Contribution margin per unit
$24
$18
Machine-hours needed per unit
4 MH
2 MH
Labor hours needed per unit
6 DLH
4 DLH
The company has 40,000 machine hours available each period. What is the maximum number of Bigs that should be made each period?
O 10,000
2,500
O 5,500.
O000
Transcribed Image Text:Consider the following production and cost data for two products, Big and Little: Big Little Demand in units 10,000 15,000 Contribution margin per unit $24 $18 Machine-hours needed per unit 4 MH 2 MH Labor hours needed per unit 6 DLH 4 DLH The company has 40,000 machine hours available each period. What is the maximum number of Bigs that should be made each period? O 10,000 2,500 O 5,500. O000
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