Soap Company manufactures Soap X and Soap Y and can sell all it can make of either.Hours available to produce the products is the constrained resources.Based on the following data, which statement is true? $$\begin{array} { l c c }
& \mathrm { X } & \mathrm { Y } \
\hline \text { Sales Price } & \$ 20 & \$ 25 \
\text { Variable Cost } & 14 & 15 \
\hline \text { Hours needed to process } & 3 & 5
\end{array}$$
A) X is more profitable than Y.
B) Y is more profitable than X.
C) Neither X nor Y have a positive contribution margin.
D) X and Y are equally profitable.

Question

Soap Company manufactures Soap X and Soap Y and can sell all it can make of either.Hours available to produce the products is the constrained resources.Based on the following data, which statement is true? $$\begin{array} { l c c } 
& \mathrm { X } & \mathrm { Y } \
\hline \text { Sales Price } & \$ 20 & \$ 25 \
\text { Variable Cost } & 14 & 15 \
\hline \text { Hours needed to process } & 3 & 5
\end{array}$$
A) X is more profitable than Y.
B) Y is more profitable than X.
C) Neither X nor Y have a positive contribution margin.
D) X and Y are equally profitable.

Quizplus · Accepted Answer

The Answer of Soap Company manufactures Soap X and Soap Y and can sell all it can make of either.Hours available to produce the products is the constrained resources.Based on the following data, which statement is true? $$\begin{array} { l c c } 
& \mathrm { X } & \mathrm { Y } \
\hline \text { Sales Price } & \$ 20 & \$ 25 \
\text { Variable Cost } & 14 & 15 \
\hline \text { Hours needed to process } & 3 & 5
\end{array}$$
A) X is more profitable than Y.
B) Y is more profitable than X.
C) Neither X nor Y have a positive contribution margin.
D) X and Y are equally profitable.

Soap Company Manufactures Soap X and Soap Y and Can