Floaty Boaty (FB) is a river tube manufacturing company. Summer is rapidly approaching, and FB only has 200 pounds of rubber left (and their suppliers have run out as well). FB manufactures three types of river tubes: towable river tubes, free-floating river tubes, and kiddy 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 FB's established network.
Which type of river tube would be the most profitable for FB to produce?

Question

Floaty Boaty (FB) is a river tube manufacturing company. Summer is rapidly approaching, and FB only has 200 pounds of rubber left (and their suppliers have run out as well). FB manufactures three types of river tubes: towable river tubes, free-floating river tubes, and kiddy 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 FB's established network.
Which type of river tube would be the most profitable for FB to produce?

Quizplus · Accepted Answer

The Answer of Floaty Boaty (FB) is a river tube manufacturing company. Summer is rapidly approaching, and FB only has 200 pounds of rubber left (and their suppliers have run out as well). FB manufactures three types of river tubes: towable river tubes, free-floating river tubes, and kiddy 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 FB's established network.
Which type of river tube would be the most profitable for FB to produce?

Floaty Boaty (FB) Is a River Tube Manufacturing Company