Rubber Rafts, (RR), is a river tube manufacturing company. Summer is rapidly approaching, and RR only has 200 pounds of rubber left (and their suppliers have run out as well). RR manufactures two types of river tubes: towable river tubes and free-floating river tubes. Management is wondering which tubes should be produced with the remaining rubber, in order to maximize profits. The following information shows the per-unit information regarding the production and sale of these tubes:
Assume that selling costs are negligible at this point, given the current market for river tubes and RR's established network.
Which type of river tube would be the most profitable for RR to produce?

Question

Rubber Rafts, (RR), is a river tube manufacturing company. Summer is rapidly approaching, and RR only has 200 pounds of rubber left (and their suppliers have run out as well). RR manufactures two types of river tubes: towable river tubes and free-floating river tubes. Management is wondering which tubes should be produced with the remaining rubber, in order to maximize profits. The following information shows the per-unit information regarding the production and sale of these tubes:
  Assume that selling costs are negligible at this point, given the current market for river tubes and RR's established network.
Which type of river tube would be the most profitable for RR to produce?

Quizplus · Accepted Answer

The Answer of Rubber Rafts, (RR), is a river tube manufacturing company. Summer is rapidly approaching, and RR only has 200 pounds of rubber left (and their suppliers have run out as well). RR manufactures two types of river tubes: towable river tubes and free-floating river tubes. Management is wondering which tubes should be produced with the remaining rubber, in order to maximize profits. The following information shows the per-unit information regarding the production and sale of these tubes:
  Assume that selling costs are negligible at this point, given the current market for river tubes and RR's established network.
Which type of river tube would be the most profitable for RR to produce?

Rubber Rafts, (RR), Is a River Tube Manufacturing Company