Details for two products made by a company were as follows. Product X $Selling price per unit: 13 Variable cost per unit: 11 Product Y $Selling price per unit: 8 Variable cost per unit: 4 The company could sell a maximum of 11000 units of X and 9000 units of Y. However, the company cannot produce more than 10000 units of X and Y together due to production constraints. Which production mix will maximise profits?
✓ Correct Answer
The correct answer is B: 1000 (units of X), 9000 (units of Y)
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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