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Omega Company Reported the Following Information for the Company's Two

Question 42

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Omega Company reported the following information for the company's two products:  Product X Product Y  Selling price per unit $35$25 Variable cost per unit 2015\begin{array}{|l|c|c|}\hline & \text { Product } \mathrm{X} & \text { Product Y } \\\hline \text { Selling price per unit } & \$ 35 & \$ 25 \\\hline \text { Variable cost per unit } & 20 & 15 \\\hline\end{array} Assume that 75,000 machine hours are available;product X takes 4 machine hours to produce,and product Y takes 2 machine hours to produce.The company can sell all it can make of either product.Which of the following statements is


A) Product Y should be produced because more of it can be produced.
B) Product Y should be produced because it will produce greater total profit.
C) Product X should be produced because it provides a greater contribution margin.
D) Both products provide the same total profit.

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