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Zantaq Inc The Market Demand Is Limited to 2,000 Units of Each

Question 70

Multiple Choice

Zantaq Inc. has 5,400 machine hours available each month. The following information on the company's three products is available:
 Side  Bookcases  Chairs  Tables  Contribution margin per unit $15.00$18.00$7.50 Machine hours per unit 321\begin{array} { l c r r } & & & \text { Side } \\& \text { Bookcases } & \text { Chairs } & \text { Tables }\\\text { Contribution margin per unit } &\$ 15.00 & \$ 18.00 & \$ 7.50 \\\text { Machine hours per unit } & 3&2&1\end{array}
The market demand is limited to 2,000 units of each of the three products.
-How many units of each should Zantaq produce and sell?
 Bookcases  Chairs  Side Tables \begin{array} { l r r r } & { \text { Bookcases } } & { \text { Chairs } } & { \text { Side Tables } } \\\end{array}
A. 2,0002,0002,000\begin{array} { l r r r } & 2,000 &&& 2,000 && 2,000 \\\end{array}
B. 02,0002,000\begin{array} { l r r r } && 0 &&&& 2,000 & &2,000 \\\end{array}
C. 02,0001,400\begin{array} { l r r r } && 0 &&&& 2,000 && 1,400 \\\end{array}
D. 1,80000\begin{array} { l r r r } & 1,800 &&&& 0 &&&& 0 \\\end{array}


A) Option A
B) Option B
C) Option C
D) Option D

Correct Answer:

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