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James Rockers Co. manufactures two models, Standard and Premium. Weekly demand is estimated to be 200 units of the Standard Model and 100 units of

James Rockers Co. manufactures two models, Standard and Premium. Weekly demand is estimated to be 200 units of the Standard Model and 100 units of the Premium Model. The following per unit data apply:

Standard

Premium

Selling price per unit

$40

$60

Total variable costs per unit

$22

$40

Total fixed costs per unit

$12

$4

Number of machine hours required per unit

2

4

Machine hours are the constrained resource. There are only 600 machine hours available per week. How many units of each model should James produce per week in order to maximize profits?

100 units of Standard and 100 units of Premium

200 units of Standard and 50 units of Premium

150 units of Standard and 75 units of Premium

140 units of Standard and 80 units of Premium

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