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The Garrison Company Manufactures Two Products: Oxy Cleaner and Sonic

Question 64

Multiple Choice

The Garrison Company manufactures two products: Oxy Cleaner and Sonic Cleaner.The costs and revenues are as follows: Oxy Cleaner  Sonic Cleaner  Sales Price $75$44 Variable cost per unit 4021\begin{array} { | l | r | r | } \hline & Oxy \text { Cleaner } & \text { Sonic Cleaner } \\\hline \text { Sales Price } & \$ 75 & \$ 44 \\\hline \text { Variable cost per unit } & 40 & 21 \\\hline\end{array} Total demand for Oxy is 10,000 units and for Sonic is 6,000 units.Machine hours is a scarce resource.During the year,50,000 machine hours are available.Oxy requires 4 machine hours per unit,while Sonic requires 2.5 machine hours per unit.How many units of Oxy and Sonic should Garrison produce?
 oxy Cleaner  Sonic Cleaner  A. 10,0000 B. 06,000 C. 8,7506,000 D. 10,0006,000\begin{array} { | l | r | r | } \hline& \text { oxy Cleaner } & \text { Sonic Cleaner } \\\hline \text { A. } & 10,000 & 0 \\\hline \text { B. } & 0 & 6,000 \\\hline \text { C. } & 8,750 & 6,000 \\\hline \text { D. } & 10,000 & 6,000 \\\hline\end{array}


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

Correct Answer:

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