Isabelle's Furniture manufactures a small table and a large table.The small table sells for $700,has variable costs of $560 per table,and takes 10 direct labor hours to manufacture.The large table sells for $1,600,has variable costs of $970,and takes eight direct labor hours to manufacture.The company has a maximum of 5,000 direct labor hours per month when operating at full capacity.If there are no constraints on sales of either product,and the company could choose any proportions of product mix that they wanted,what is the optimum product mix to maximize operating income of the company?
A) 500 units of small and 625 units of large
B) 0 units of small and 625 units of large
C) 625 units of small and 500 units of large
D) 500 units of small and 0 units of large
Correct Answer:
Verified
Q120: Custom Furniture manufactures a small table and
Q121: A company sells two products with
Q122: Tosh Company fabricates automobiles.Each auto includes
Q123: Tonix Corporation produces two products,P and
Q124: Doro Fill Company fabricates automobiles.Each auto
Q126: Handbags R Us sells designer and
Q129: Valuable Electronics uses a standard part in
Q130: Sand Corporation manufactures two styles of
Q142: _ refers to the benefit given up
Q149: Gnome Company is deciding whether to continue
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents