Q4

The Multi Resource Company manufactures two lines of washing machines, Regular and Deluxe. The contribution margin per unit of a Regular model is $110 and for Deluxe Model is $175. The company has two departments, Assembly and Testing. The Regular Model requires 3 hours to assemble, while a Deluxe Model requires 4 hours. The total time available in Assembly is 12,360 hours. In the Testing Department, it requires 2.5 hours to test a Regular Model and 1.5 hours to test a Deluxe Model. A total of 6,030 hours of testing time is available. Based on this information, the optimum production plan for Multi Resource is:

• 1,015 Regular Models and 2,329 Deluxe Models

• 3,090 Deluxe Models

• 4,120 Deluxe Models

• 4,020 Regular Models

• 2,412 Regular Models