Question
The Garrison Company manufactures two products: Oxy Cleaner and Sonic Cleaner. The costs and revenues are as follows: Oxy Cleaner Sonic Cleaner Sales Price $
The Garrison Company manufactures two products: Oxy Cleaner and Sonic Cleaner. The costs and revenues are as follows:
| Oxy Cleaner |
| Sonic Cleaner | ||
Sales Price | $ | 75 |
| $ | 44 |
Variable cost per unit |
| 40 |
|
| 21 |
Total demand for Oxy is 10,000 units and for Sonic is 6,000 units. Machine hours is a scarce resource. During the year, 50,000 machine hours are available. Oxy requires 4 machine hours per unit, while Sonic requires 2.5 machine hours per unit. How many units of Oxy and Sonic should Garrison produce?
| Oxy Cleaner | Sonic Cleaner |
A. | 10,000 | 0 |
B. | 0 | 6,000 |
C. | 8,750 | 6,000 |
D. | 10,000 | 6,000 |
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