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Smash Company Has 5000 Machine Hours Available Annually to Manufacture

Question 22

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Smash Company has 5000 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 $300 Unit variable costs $100 Annual demand 1900 units  Machine time 1.25 hours per unit  Mid  Unit sales price $125 Unit variable costs $80 Annual demand 5000 units  Machine time 4 hours per unit \begin{array} { | l | l | } \hline \text { Pro } & \\\hline \text { Unit sales price } & \$ 300 \\\hline \text { Unit variable costs } & \$ 100 \\\hline \text { Annual demand } & 1900 \text { units } \\\hline \text { Machine time } & 1.25 \text { hours per unit } \\\hline \text { Mid } & \\ \hline \text { Unit sales price } & \$ 125 \\\hline \text { Unit variable costs } & \$ 80 \\\hline \text { Annual demand } & 5000 \text { units } \\\hline \text { Machine time } & 4 \text { 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) 1900 units of Pro and 1244 units of Mid
B) 1900 units of Pro and 656 units of Mid
C) 1900 units of Pro and 5000 units of Mid
D) 5000 units of Mid and 656 units of Pro

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