Peyton company manufactures phone

Reference no: EM131063558

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 Y

Sales Price $48 $44

Varaible Cost 38 28

Time needed to process 5 hours 8 hours

A. Y is more profitable than X.

B. X is more profitable than Y.

C. Neither X nor Y is profitable

D. X and Y are equally profitable

Reference no: EM131063558

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