Reference no: EM133032120
Question - The Badminton Company has 4,000 machine hours available annually to manufacture racquets. The following information is available for the two different racquets produced by Badminton:
Pro
Unit sales price $300
Unit variable costs $150
Annual demand 2,000 units
Machine time 1.50 hours per unit
Mid
Unit sales price $150
Unit variable costs $60
Annual demand 4,000 units
Machine time 2 hours per unit
Required - How many units of each racquet should be manufactured for the company to maximize its operating income?
A) 4,000 units of Mid and 500 units of Pro
B) 2,000 units of Pro and 4,000 units of Mid
C) 2,000 units of Pro and 1,200 units of Mid
D) 2,000 units of Pro and 500 units of Mid