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The Mixed-Up Floor Co

Question 36

Multiple Choice

The Mixed-Up Floor Co.Ltd makes two products,carpet polish and floor deodoriser.Operating information from the previous year is as follows.Fixed costs of $20 000 per year are presently allocated evenly between both products.If the product mix were to change,total fixed costs would remain the same.Assuming everything produced for either product can be sold,how many units of each product should be produced and sold if machine hours are limited to 10 000?
The Mixed-Up Floor Co.Ltd makes two products,carpet polish and floor deodoriser.Operating information from the previous year is as follows.Fixed costs of $20 000 per year are presently allocated evenly between both products.If the product mix were to change,total fixed costs would remain the same.Assuming everything produced for either product can be sold,how many units of each product should be produced and sold if machine hours are limited to 10 000? Carpet polish Floor deodoriser A) 10 000 units 0 units B) 5 000 units 10 000 units C) 8 000 units 4000 units D) 0 units 20 000 units
Carpet polish
Floor deodoriser


A) 10 000 units
0 units
B) 5 000 units
10 000 units
C) 8 000 units
4000 units
D) 0 units
20 000 units

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