Peyton Company manufactures Phone X and Phone Y. Peyton can sell all it can make of either. Based on the following data, assuming the number of hours is a constraint, which statement is true?XYSales price $48$44Variable cost 3828Time needed to process 5 hours8 hoursQuestion 1 options:1)Neither X nor Y is profitable.2)X is more profitable than Y.3)Y is more profitable than X.4)X and Y are equally profitable.

Key factor refers to a factor of production whose availability is limited.

Answered: Peyton Company manufactures Phone X and…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 8E

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Peyton Company manufactures Phone X and Phone Y. Peyton can sell all it can make of either. Based on the following data, assuming the number of hours is a constraint, which statement is true?

X

Sales price
$48

$44

Variable cost
38

Time needed to process
5 hours

8 hours

Question 1 options:

Neither X nor Y is profitable.

X is more profitable than Y.

Y is more profitable than X.

X and Y are equally profitable.

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