Question
Mountaineer Products manufactures two types of tents: single-wall and double-wall. Selected data related to each type of tent is as follows: single-wall double-wall sales price
Mountaineer Products manufactures two types of tents: single-wall and double-wall. Selected data related to each type of tent is as follows:
single-wall double-wall
sales price $250.00 $375.00
Direct materials $25.00 $50.00
Direct labor $20.00 $40.00
Variable overhead $10.00 $15.00
machine hours 2 3
total fixed overhead is $150,000. most of the manufacturing process is done on specialized machines. for the upcoming year, there is a maximum of 9,000 machine hours available. management believes there is sufficient demand for 3,000 single-wall and 4,000 double-wall tents each year
Refer to the mountaineer products information above. in order to maximize profits, how many of each type of tent should be produced?
a. single wall 1500 double wall 4000
b. single wall 0 double wall 3,000
c. single wall 3,000 double wall 1,000
d. single wall 1,800 double wall 1,800
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