### Create an Account

Home / Questions / TwinCo produces and sells two products Product A sells for 8 and has variable expenses of ...

# TwinCo produces and sells two products Product A sells for 8 and has variable expenses of 3 Product B sells for 18 and has variable expenses of 10 It predicts sales of 20000 units of A and 10

TwinCo produces and sells two products. Product A sells for \$8 and has variable expenses of \$3. Product B sells for \$18 and has variable expenses of \$10. It predicts sales of 20,000 units of A and 10,000 units of B. Fixed expenses are \$100,000 per month. Assume that TwinCo hits its sales goal for February of \$600,000, but falls short of its expected before-tax profit of \$70,000. What has happened?

a. TwinCo sold 40,000 units of product A and no product B.
b. TwinCo sold more of both products A and B than expected.
c. TwinCo sold more of product A and less of product B than expected.
d. TwinCo sold more of product B and less of product A than expected.

Jun 09 2021 View more View Less