Omega Company reported the following information for the company's two products: 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 true?
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.
Correct Answer:
Verified
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