Sandy Company manufactures three size chairs: small, medium and large. The maximum machine-hours available are 6,000 per week. Production information is provided below:

Small Medium Large

Unit selling price $150 $250 $500

Unit manufacturing costs:

Variable $60 $120 $200

Fixed $40 $50 $120

Unit selling & administrative costs:

Variable $30 $30 $30

Machine hours (MH) per unit 20 MHs 40 MHs 100 MHs

Potential demand 100 chairs 120 chairs 100 chairs

Fixed manufacturing costs of $30,000 are assigned at the rate of $2.50 per machine hour. How many of each product should be produced per week using the short-run profit maximizing strategy?

a 0 small; 120 medium; 12 large

b 100 small; 0 medium; 40 large

c 100 small; 100 medium; 0 large

d 100 small; 20 medium; 40 large