Question
Use the following information to answer the two questions that follow. Birk produces small, medium and large hats. Relevant data is shown below. Machine hours
Use the following information to answer the two questions that follow. Birk produces small, medium and large hats. Relevant data is shown below. Machine hours are limited to 6,000 per week. Small Medium Large Unit selling price $150 $250 $500 Unit variable manufacturing costs (60) (120) (200) Unit fixed manufacturing costs (40) (50) (120) Unit variable S&A costs (30) (30) (30) Unit profit $ 20 $ 50 $150 Demand in units 100 120 100 Machine-hours per unit 20 40 100 14. Given the machine-hour constraint, how many of each product should Birk Co. produce? Small Medium Large A) 0 120 12 B) 100 0 40 C) 100 100 0 D) 100 20 40
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