Speedy Sports manufactures three kinds of tennis rackets. However, Speedy has a limited number of machine hours available to make these items. The following data pertain to each racket:
Wood Steel Graphite
Machine time per unit 48 min. 50 min. 75 min.
Unit sales price $25 $30 $50
Unit variable cost 15 19 34
Unit contribution margin $10 $11 $16
a)In what order should the rackets be produced?
b)Assume there are 1,200 machine hours available and that demand is 200, 600, and 500 units, respectively for wood, steel, and graphite. Determine how many units of each should be produced.
c)What is the maximum amount that Speedy would be willing to pay per machine hour to relax the constraint?

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The Answer of Speedy Sports manufactures three kinds of tennis rackets. However, Speedy has a limited number of machine hours available to make these items. The following data pertain to each racket:
Wood Steel Graphite
Machine time per unit 48 min. 50 min. 75 min.
Unit sales price $25 $30 $50
Unit variable cost 15 19 34
Unit contribution margin $10 $11 $16
a)In what order should the rackets be produced?
b)Assume there are 1,200 machine hours available and that demand is 200, 600, and 500 units, respectively for wood, steel, and graphite. Determine how many units of each should be produced.
c)What is the maximum amount that Speedy would be willing to pay per machine hour to relax the constraint?

Speedy Sports Manufactures Three Kinds of Tennis Rackets