FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Rosie’s Company has three products, P1, P2, and P3. The maximum Rosie’s can sell is 72,000 units of P1, 45,000 units of P2, and 33,000 units of P3. Rosie’s has limited production capacity of 30,000 hours. It can produce 12 units of P1, 6 units of P2, and 3 units of P3 per hour. Contribution margin per unit is $5 for the P1, $15 for the P2, and $25 for the P3. What is the most profitable sales mix for Rosie’s Company?
Multiple Choice
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138,000 P1, 45,000 P2, 33,000 P3.
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29,700 P1, 45,000 P2, 138,000 P3.
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138,000 P1, 41,000 P2, 138,000 P3.
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31,500 P1, 41,000 P2, 33,000 P3.
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29,700 P1, 46,000 P2, 29,700 P3.
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