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Bellring Ltd produces two products: Cordless and standard phone. The selling price of a Cordless phone is $200, and the selling price of a standard

Bellring Ltd produces two products: Cordless and standard phone. The selling price of a Cordless phone is $200, and the selling price of a standard phone is $50. The variable cost per unit for the cordless phone is $50 and the variable cost per unit of the standard phone is $ 20. The direct labour hour requirement and demand for the two products are:

Cordless Standard
Monthly demand 400 250
Direct labour hour required per unit 4 hours 1.5 hours

Bellring Ltd's production capacity is 2500 direct labour hours. To maximise the profit, Bellring Ltd should produce:

400 units of cordless and 250 standard phone

400 units cordless phone only

400 units of cordless and 333 standard phone

None of the above

Which is the correct option?

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