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...

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

Variable cost

38

28

Time needed to process

5 hours

8 hours

​

Question 1 options:

1)

Neither X nor Y is profitable.

2)

X is more profitable than Y.

3)

Y is more profitable than X.

4)

X and Y are equally profitable.