Yetmar Corporation produces two products, Pots and Pans. The following information is available for these two products: Pots Pans Selling price per unit $25.00 $15.00 Variable cost per unit 12.00 9.00 Total fixed costs $15,000 Total production capacity 10,000 units If a maximum of 7,000 units of each product can be sold, it would be best to:
A.
a. produce 7,000 units of Pots and 3,000 units of Pans to maximize profits
B.
b. produce only 3,000 units of Pots and 7,000 units of Pans to maximize profits
C.
c. produce 5,000 units of both Pots and Pans
D.
d. discontinue the production of both Pots and Pans