Production data for the number of hours required per unit for making the Droid and iPhone versions of cell phone components by Bizzer, a high-tech manufacturing firm, is given below.Suppose the plant decides to make the maximum number of iPhone components possible and reach the rest of its capacity by making Droid phones.How much profit will it make?

Monthly Product

A)$3750
B)$1500
C)$5250
D)$4000

Question

Production data for the number of hours required per unit for making the Droid and iPhone versions of cell phone components by Bizzer, a high-tech manufacturing firm, is given below.Suppose the plant decides to make the maximum number of iPhone components possible and reach the rest of its capacity by making Droid phones.How much profit will it make?

Monthly Product

Monthly Product

A)$3750 
B)$1500 
C)$5250 
D)$4000

Quizplus · Accepted Answer

To make the maximum number of iPhone components possible, we need to allocate all available capacity to making iPhones. Based on the production data, making one unit of iPhone requires 2 hours and making one unit of Droid requires 1 hour. Let's assume the plant has a total of K hours available.

Number of units of iPhone that can be made = K/2
Number of units of Droid that can be made = (K - (K/2))/1 = K/2

To maximize profit, we need to allocate the available capacity in such a way that profit is maximized. Let P be the profit per unit of iPhone and Q be the profit per unit of Droid. Then, the total profit is given by:

Total Profit = (K/2) * P + (K/2) * Q

We are given that the profit per unit of iPhone is $500 and the profit per unit of Droid is $250. Substituting these values, we get:

Total Profit = (K/2) * $500 + (K/2) * $250
            = ($375 * K)
			
Therefore, the maximum profit that can be made is $3750 if the plant allocates all available capacity to making iPhones.

Production Data for the Number of Hours Required Per Unit