Question
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
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 12,120 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 6,210 hours of testing time is available. Based on this information, the optimum production plan for Multi Resource is:
A) 2,484 Regular Models.
B) 3,030 Deluxe Models.
C) 1,211 Regular Models and 2,122 Deluxe Models.
D) 4,040 Deluxe Models.
E) 4,140 Regular Models.
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