Solved

Smash Company Has 5,000 Machine Hours Available Annually to Manufacture

Question 118

Multiple Choice

Smash Company has 5,000 machine hours available annually to manufacture badminton racquets.The following information is available for the two different racquets produced by Smash:  Pro  Unit sales price $500 Unit variable costs $150 Annual demand 1,900 units  Machine time  1 hours per unit  Mid  Unit sales price $150 Unit variable costs $60 Annual demand 4,000 units  2 hours per unit \begin{array} { | l | r | } \hline \text { Pro } & \\ \hline \text { Unit sales price } & \$ 500 \\\hline \text { Unit variable costs } & \$ 150 \\\hline \text { Annual demand } & 1,900 \text { units } \\\hline \text { Machine time } & \text { 1 hours per unit } \\\hline \text { Mid } & \\ \hline \text { Unit sales price } & \$150\\\hline \text { Unit variable costs } &\$60\\\hline \text { Annual demand } & 4,000 \text { units }\\\hline & \text { 2 hours per unit } \\\hline\end{array} How many units of each racquet should be manufactured for the company to maximize its operating income? (Round your answer to the nearest whole unit.)


A) 1,900 units of Pro and 350 units of Mid
B) 1,900 units of Pro and 1,550 units of Mid
C) 1,900 units of Pro and 4,000 units of Mid
D) 4,000 units of Mid and 1,550 units of Pro

Correct Answer:

verifed

Verified

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

Related Questions