Question
Kinnane's Fine Furniture manufactures two models, Standard and Premium. Weekly demand is estimated to be 107 units of the Standard Model and 70 units of
Kinnane's Fine Furniture manufactures two models, Standard and Premium. Weekly demand is estimated to be 107 units of the Standard Model and 70 units of the Premium Model. The following per unit data apply:
Standard
Premium
Contribution margin per unit
$ 21
$ 24
Number of machineminushours required
3
6
If there are 495 machineminushours available per week, how many rockers of each model should KInnance produce to maximize profits?
A.
107 units of Standard and 70 units of Premium
B.
25 units of Standard and 70 units of Premium
C.
107 units of Standard and 29 units of Premium
D.
83 units of Standard and 41 units of Premium
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