Soap Company manufactures Soap X and Soap Y and can sell all it can make of either.Based on the following data,which statement is true?

A)X is more profitable than Y.
B)Y is more profitable than X.
C)Neither X nor Y have a positive contribution margin.
D)X and Y are equally profitable.

Question

Soap Company manufactures Soap X and Soap Y and can sell all it can make of either.Based on the following data,which statement is true?

A)X is more profitable than Y. 
B)Y is more profitable than X. 
C)Neither X nor Y have a positive contribution margin. 
D)X and Y are equally profitable.

Quizplus · Accepted Answer

The contribution margin for both Soap X and Y is positive, indicating that both products are profitable. There is no information provided on the profitability of each product, so we cannot determine which is more profitable. Therefore, option D, X and Y are equally profitable, is the true statement.

Soap Company Manufactures Soap X and Soap Y and Can