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Le Around Fumiture manutactures two products: Couches and Beds. The foliowing data are avalable: The...

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Accounting

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Le Around Fumiture manutactures two products: Couches and Beds. The foliowing data are avalable: The compary can manulacture either 3 couches per machine hour or 2 bed(0) per machine hour. The company's production capacity is 6,500 machine hours per month. Tomaimize profles, what product and hew many units should the company produce in a month? A. 19,500 oouches B. 13,000 couches and 19.500 beds C. 10,500 eouches and 13,000 beds D. 13,000 beds Blue Ridge Bicycles uses a standard part in the manufacture of several of its bikes. The cost of producing 42,000 parts is $140,000, which includes fxod costs of $70,000 and variable costs of $70,000. The company can buy the part from an outside supplier for $3.70 per unit, and avoid 30% of the foced costs. If Blue Ridge Bicycles makes the part, how much will its operating income be? A. $64,400 less than if the company bought the part B. $91,000 greater than if the company bought the part C. $64,400 greater than if the company bought the part D. $91,000 less than if the company bought the part

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