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

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

Quizplus · Accepted Answer

C) The plant can make a maximum of 1000 units total. At maximum capacity for iPhones, it can make 625 iPhone units and 375 Droid units. At $4 profit for Droid units and $6 profit for iPhone units, the total profit is $4(375) + $6(625) = $5250.

Production Data for the Number of Hours Required Per Unit