Question
he Multi Resource Company manufactures two lines of washing machines, Regular and Deluxe. The contribution margin per unit of a Regular model is $110 and
he Multi Resource Company manufactures two lines of washing machines, Regular and Deluxe. The contribution margin per unit of a Regular model is $110 and for Deluxe Model is $175. The company has two departments, Assembly and Testing. The Regular Model requires 3 hours to assemble, while a Deluxe Model requires 4 hours. The total time available in Assembly is 12,504 hours. In the Testing Department, it requires 2.5 hours to test a Regular Model and 1.5 hours to test a Deluxe Model. A total of 6,090 hours of testing time is available. Based on this information, the optimum production plan for Multi Resource is:
Multiple Choice
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2,436 Regular Models
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3,126 Deluxe Models
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1,019 Regular Models and 2,362 Deluxe Models
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4,168 Deluxe Models
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4,060 Regular Models
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