Determine which product mix should be pushed

Reference no: EM13189685

Product A:
Selling Price $10
Variable Costs $5
Fixed Costs $2000

Product B:
Selling Price $12
Variable Costs $10.00
Fixed Costs $600

[a] If these products are sold in the ratio of 4a to 3b, what is break even point? what about 5a to 5b? In order to maximize profit, which product mix should be pushed?

[b] Assume that product A requireds .5 hour per unit and B requires .25 hour per unit. If both products must go through the same manufacturing machine and there are only 30000 machine hours available per period, which product should be pushed?

Reference no: EM13189685

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