Multiple Choice
Beauty Tools Corporation makes and sells brushes and combs.It can sell all of either product it can make.The following data are pertinent to each respective product:
| Brushes | Combs | |
|---|---|---|
| Units of output per machine hour | 8 | 20 |
| Selling price per unit | $12.00 | $4.00 |
| Product cost per unit | ||
| Direct material | $1.00 | $1.20 |
| Direct labor | 2.00 | 0.10 |
| Variable overhead | 0.50 | 0.05 |
Total fixed overhead is $380,000.
The company has 40,000 machine hours available for production.What sales mix will maximize profits?
A) 320,000 brushes and 0 combs
B) 0 brushes and 800,000 combs
C) 160,000 brushes and 600,000 combs
D) 252,630 brushes and 252,630 combs
Correct Answer:
Verified
Correct Answer:
Verified
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