Question
Hill's Bicycles manufactures two bike lines: Elite and Standard. Weekly demand is estimated to be 100 units of the Elite Model and 150 units of
Hill's Bicycles manufactures two bike lines: Elite and Standard. Weekly demand is estimated to be 100 units of the Elite Model and 150 units of the Standard Model. The following per unit data apply: Elite Standard Contribution margin per unit $150 $120 Number of machine-hours required 3 2 If there are only 570 machine-hours available per week, how many bicycles s of each model should Hill produce to maximize profits?
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