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QUESTION

The Winwood Company manufactures two products: Q and T. The costs and revenues are as follows: Product Q | Product T Sales price $162.00 | $100.00...

| Product T   

Sales price $162.00 | $100.00   

Variable cost per unit 86.00 | 48.00 

Total demand for Product Q is 15,200 units and for Product T is 10,200 units. Machine time is a scarce resource. During the year, 55,200 machine hours are available. Product Q requires 5.00 machine hours per unit, while Product T requires 3.00 machine hours per unit.

How many units of Products Q and T should Winwood produce?

 Product Q|Product T   

a.15,200 | 0   

b.8,907 | 4,754   

c.12,000 | 0  

d.4,920 | 10,200  

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