Avocado Ltd Produces Small Electronic Components for Kitchen Appliances

Avocado Ltd produces small electronic components for kitchen appliances.Two of its products are Component Y and Component Z.The selling price of Component Y is $15,and the selling price of Component Z is $20.The variable cost per unit for Component Y is $8 and the variable cost per unit of Component Z is $11.The machine hour requirement and demand for the two products are:
Avocado Ltd's production capacity is 6500 machine hours per month.The optimal product mix is:

A) 1000 units X,1500 units Y
B) 0 units X,2167 units Y
C) 1000 units X,2500 units Y
D) 1500 units X,1000 units Y

Correct Answer:

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