Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Woodstock Furniture manufactures a small table and a large table. The small table sells for $800, has variable costs of $580 per table, and takes
Woodstock Furniture manufactures a small table and a large table. The small table sells for $800, has variable costs of $580 per table, and takes 10 direct labor hours to manufacture. The large table sells for $1,500, has variable costs of $970, and takes eight direct labor hours to manufacture. The company has a maximum of 5,000 direct labor hours per month when operating at full capacity. If there are no constraints on sales of either product, and the company could choose any proportions of product mix that they wanted, what is the optimum product mix to maximize operating income of the company? A. 500 units of small and 0 units of large B. O units of small and 625 units of large C. 500 units of small and 625 units of large D. 625 units of small and 500 units of large
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started