Question
Smash Company has 5,000 machine hours available annually to manufacture badminton racquets. The following information is available for the two different racquets produced by Smash:
Smash Company has 5,000 machine hours available annually to manufacture badminton racquets. The following information is available for the two different racquets produced by Smash:
Pro | |
Unit sales price | $500 |
Unit variable costs | $150 |
Annual demand | 1,800 units |
Machine time | 11 hours per unit |
Mid | |
Unit sales price | $150 |
Unit variable costs | $60 |
Annual demand | 6,000 units |
22 hours per unit |
How many units of each racquet should be manufactured for the company to maximize its operating income? (Round your answer to the nearest whole unit.)
A.1,800 units of Pro and 6,000 units of Mid
B.1,800 units of Pro and 1,600 units of Mid
C. 6,000 units of Mid and 1,600 units of Pro
D.1,800 units of Pro and 200 units of Mid
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