Question
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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started