Answer the following questions using the information below:
Helmer's Rockers manufactures two models, Standard and Premium. Weekly demand is estimated to be 100 units of the Standard Model and 70 units of the Premium Model. The following per unit data apply:
$\begin{array}{lrr}&\text { Standard }&\text { Premium }\
\text { Contribution margin per unit } & \$ 18 & \$ 20 \
\text { Number of machine-hours required } & 3 & 4
\end{array}$
-If there are 496 machine-hours available per week,how many rockers of each model should Jim Helmer produce to maximize profits?
A) 100 units of Standard and 49 units of Premium
B) 72 units of Standard and 70 units of Premium
C) 100 units of Standard and 70 units of Premium
D) 85 units of Standard and 60 units of Premium

Question

Answer the following questions using the information below:
Helmer's Rockers manufactures two models, Standard and Premium. Weekly demand is estimated to be 100 units of the Standard Model and 70 units of the Premium Model. The following per unit data apply:
 $\begin{array}{lrr}&\text { Standard }&\text { Premium }\
\text { Contribution margin per unit } & \$ 18 & \$ 20 \
\text { Number of machine-hours required } & 3 & 4
\end{array}$
-If there are 496 machine-hours available per week,how many rockers of each model should Jim Helmer produce to maximize profits?
A) 100 units of Standard and 49 units of Premium
B) 72 units of Standard and 70 units of Premium
C) 100 units of Standard and 70 units of Premium
D) 85 units of Standard and 60 units of Premium

Quizplus · Accepted Answer

To maximize profits, use all available machine-hours efficiently. Producing 100 Standard units (300 hours) and 49 Premium units (196 hours) uses exactly 496 hours.

Answer the Following Questions Using the Information Below: Helmer's Rockers

Answer the Following Questions Using the Information Below:
Helmer's Rockers