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Elliot Company Can Sell All of Its Products a and Z

Question 103

Multiple Choice

Elliot Company can sell all of its products A and Z that it can produce,but it has limited production capacity.It can produce 8 units of A per hour or 10 units of Z per hour,and it has 20,000 production hours available.Contribution margin per unit is $12 for A and $10 for Z.What is the most profitable sales mix for Elliot Company?


A) 84,000 units of A and 60,000 units of Z.
B) 48,000 units of A and 80,000 units of Z.
C) 60,000 units of A and 100,000 units of Z.
D) 120,000 units of A and 0 units of Z.
E) 0 units of A and 200,000 units of Z.

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