Superglue Corporation manufactures two products,Product1 and Product2.The following annual information was gathered: Total annual fixed costs are $25,000.Assume Superglue Corporation could produce and sell any mix of products at full capacity.It takes twice as long to manufacture Product1 when compared to Product2.The company has 120,000 hours of plant capacity available.How many units of Product1 and Product2 should be manufactured in a year to maximize profits?
A)an equal number of Product1 and Product2
B)only Product1
C)only Product2
D)more units of Product1 than Product2

Question

Superglue Corporation manufactures two products,Product1 and Product2.The following annual information was gathered:  Total annual fixed costs are $25,000.Assume Superglue Corporation could produce and sell any mix of products at full capacity.It takes twice as long to manufacture Product1 when compared to Product2.The company has 120,000 hours of plant capacity available.How many units of Product1 and Product2 should be manufactured in a year to maximize profits?
A)an equal number of Product1 and Product2 
B)only Product1 
C)only Product2 
D)more units of Product1 than Product2

Quizplus · Accepted Answer

The Answer of Superglue Corporation manufactures two products,Product1 and Product2.The following annual information was gathered:  Total annual fixed costs are $25,000.Assume Superglue Corporation could produce and sell any mix of products at full capacity.It takes twice as long to manufacture Product1 when compared to Product2.The company has 120,000 hours of plant capacity available.How many units of Product1 and Product2 should be manufactured in a year to maximize profits?
A)an equal number of Product1 and Product2 
B)only Product1 
C)only Product2 
D)more units of Product1 than Product2

Superglue Corporation Manufactures Two Products,Product1 and Product2