Question
Delfi Company produces two models of seats, Toro and Prep. Information regarding these products for May follows: Number of units Toro: 3,000 Prep: 7,000 Sales
Delfi Company produces two models of seats, Toro and Prep. Information regarding these products for May follows:
Number of units Toro: 3,000 Prep: 7,000
Sales revenue Toro: $120,000 Prep: $140,000
Variable costs Toro: 60,000 Prep: 42,000
Fixed costs Toro: 24,000 Prep: 50,000
Net Income Toro: $36,000 Prep: $48,000
Pounds of plastic to produce one bucket Toro: 4.0 Prep: 1.6
Contribution margin per unit Toro: $20 Prep: $14
Due to increased demand of plastic in the market, Delfi Company can obtain only 9,000 pounds of plastic per month. Delfi can sell as many seats as it can produce of either model. How many of each model should Delfi produce to maximize profit in May considering the constraint?
Question 17 answer options:
Toro: 0; Prep: 4,375
Toro: 2,250; Prep: 0
Toro: 1,125; Prep: 2,812
Toro: 0; Prep: 5,625
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