Flyer Company sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $48 per unit. Flyer management desires a 12.5% profit margin on sales. Flyer's current full cost for the product is $44 per unit.
-Peyton Company manufactures Phone X and Phone Y. Peyton can sell all it can make of either phone. Based on the following data and assuming the number of hours is a constraint, which of the following statements is true?
A)X is more profitable than Y.
B)Y is more profitable than X.
C)Neither X nor Y is profitable.
D)X and Y are equally profitable.

Question

Flyer Company sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $48 per unit. Flyer management desires a 12.5% profit margin on sales. Flyer's current full cost for the product is $44 per unit.​
-Peyton Company manufactures Phone X and Phone Y. Peyton can sell all it can make of either phone. Based on the following data and assuming the number of hours is a constraint, which of the following statements is true? 
A)X is more profitable than Y. 
B)Y is more profitable than X. 
C)Neither X nor Y is profitable. 
D)X and Y are equally profitable.

Quizplus · Accepted Answer

The Answer of Flyer Company sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $48 per unit. Flyer management desires a 12.5% profit margin on sales. Flyer's current full cost for the product is $44 per unit.​
-Peyton Company manufactures Phone X and Phone Y. Peyton can sell all it can make of either phone. Based on the following data and assuming the number of hours is a constraint, which of the following statements is true? 
A)X is more profitable than Y. 
B)Y is more profitable than X. 
C)Neither X nor Y is profitable. 
D)X and Y are equally profitable.

Flyer Company Sells a Product in a Competitive Marketplace