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Which stools should they produce first to maximize profit

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Question - The Chair Company makes two kinds of bar stools: swivel stools and stationary stools. Swivel stools sell for $140 each and have variable expenses of $65 per unit. Stationary stools sell for $125 each and have variable expenses of $62 per unit. Swivel stools take 25 minutes to put together and stationary stools take 15 minutes to put together. If The Chair Company has unlimited demand for both types of stool, but only 40 hours per week to assemble the stools, which stools should they produce first to maximize profit?

A. Stationary stool because it earns $4.20 per minute.

B. Stationary stool because it earns $3 per minute.

C. Swivel stool because it sells for $140.

D. Swivel stool because it has a contribution margin of $75.

Reference no: EM132958263

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