Aviance produces two products hammers and screw drivers


Aviance produces two products: hammers and screw drivers. Demand for both products is almost equal; however, the company has only 50 hours of machine time remaining in the month before the machine must be shut down for maintenance. Hammer sell for $10 and have variable costs of $6 per unit. Screw drivers sell for $8 and have variable cost per unit of $3. Allocated fixed costs are $2 per unit. It takes 2 hours to produce a hammer and 3 hours to produce a screw driver. Which product should Aviance produce?

_____Hammers _____Screwdrivers _______Either

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Financial Accounting: Aviance produces two products hammers and screw drivers
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