Question
Bandy Corporation owns a machine that manufactures lawn games. Production time for the croquet set is 10 units per hour and for the volley ball
Bandy Corporation owns a machine that manufactures lawn games. Production time for the croquet set is 10 units per hour and for the volley ball game is 8 units per hour. The machine's capacity is 1,500 hours per year. Both products are sold to a single customer who has agreed to buy all of the company's output up to a maximum of 4,000 croquet sets and 10,000 volleyball games. Selling prices and variable costs per unit are shown below. Based on this information, what is Bandy Corporation's most profitable sales mix?
Croquet Set | Volleyball Game | |
Selling price per unit | $75 | $62 |
Variable costs per unit | 42 | 25 |
15,000 croquet sets.
2,500 croquet sets and 10,000 volleyball games.
4,000 croquet sets and 8,800 volleyball games.
4,000 croquet sets and 10,000 volleyball games.
12,000 volleyball games.
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