Solved

The Garrison Company Manufactures Two Products: Oxy Cleaner and Sonic

Question 5

Multiple Choice

The Garrison Company manufactures two products: Oxy Cleaner and Sonic Cleaner. The costs and revenues are as follows:
 Oxy  Sonic  Clearner  Clearner  Sales Price $75$44 Variable cost per unit 4021\begin{array} { l r r } & \text { Oxy } & \text { Sonic } \\& \text { Clearner } & \text { Clearner } \\\text { Sales Price } & \$ 75 & \$ 44 \\\text { Variable cost per unit } & 40 & 21\end{array}
Total demand for Oxy is 10,000 units and for Sonic is 6,000 units. Machine hours is a scarce resource. During the year, 50,000 machine hours are available. Oxy requires 4 machine hours per unit, while Sonic requires 2.5 machine hours per unit.
-
How many units of Oxy and Sonic should Garrison produce?
 Oxy Clearier  Sonic Clearner \begin{array} { l r r } & \text { Oxy Clearier } & { \text { Sonic Clearner } } \\\end{array}
A. 10,0000\begin{array} { l r r } && 10,000 &&&&& 0 \\\end{array}
B. 06,000\begin{array} { l r r } &&& 0 &&&&&& 6,000 \\\end{array}
C. 8,7506,000\begin{array} { l r r } && 8,750 &&&&& 6,000 \\\end{array}
D. 10,0006,000\begin{array} { l r r } && 10,000 &&&&& 6,000 \\\end{array}


A) Option A
B) Option B
C) Option C
D) Option D

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions