The Multi Resource Company Manufactures Two Lines of Washing Machines

Multiple Choice

The Multi Resource Company manufactures two lines of washing machines, Regular and Deluxe. The contribution margin per unit of a Regular model is $110 and for Deluxe Model is $175. The company has two departments, Assembly and Testing. The Regular Model requires 3 hours to assemble, while a Deluxe Model requires 4 hours. The total time available in Assembly is 12,000 hours. In the Testing Department, it requires 2.5 hours to test a Regular Model and 1.5 hours to test a Deluxe Model. A total of 6,000 hours of testing time is available. Based on this information, the optimum production plan for Multi Resource is:

A) 2,400 Regular Models
B) 3,000 Deluxe Models
C) 1,091 Regular Models and 2,182 Deluxe Models
D) 4,000 Deluxe Models
E) 4,000 Regular Models