Hyundai practices the low-cost producer competitive strategy

Isabelle's Furniture manufactures a small table and a large table

The small table sells for $700, has variable costs of $560 per table, and takes 10 direct labor hours to manufacture. The large table sells for $1,600, has variable costs of $970, and takes eight direct labor hours to manufacture. The company has a maximum of 5,000 direct labor hours per month when operating at full capacity. If there are no constraints on sales of either product, and the company could choose any proportions of product mix that they wanted, what is the optimum product mix to maximize operating income of the company? A) 500 units of small and 625 units of large B) 0 units of small and 625 units of large C) 625 units of small and 500 units of large D) 500 units of small and 0 units of large

________ refers to an extraneous variable attributable to changes in the test units themselves that occur with the passage of time

A) Mortality B) Interactive testing effect C) Maturation D) Main testing effect