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3. Bellows Company produces three different types of office chairs, the Peon, Manager and Executive. Information on the chairs is given in the following table:
3. Bellows Company produces three different types of office chairs, the Peon, Manager and Executive. Information on the chairs is given in the following table: Manager Executive Peon Sales price per unit $150 $280 $500 Variable cost per unit 54 110 300 Contribution per unit $96 $180 $200 Wheels per chair 4 6 8 Contribution per wheel 24 30 25 Orders to be filled (units) 200 180 90 Due to a strike at one of their suppliers, Bellows is running short on wheels for the chairs, having only 2,000 in inventory. They believe the strike will continue for a few more weeks and their supplier will start to ship again. Bellows wants to maximize its profits with the available wheels. How many units of each chair model should Bellows produce? A. Peon 0 B. 200 C. 50 D. 170 1777 180 Manager 0 180 Executive 250 15 90 100 90
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