Smash Company Has 5000 Machine Hours Available Annually to Manufacture

question 15

Multiple Choice

Smash Company has 5000 machine hours available annually to manufacture badminton racquets.The following information is available for the two different racquets produced by Smash: $$\begin{array} { | l | l | } \hline \text { Pro } & \\\hline \text { Unit sales price } & \$ 300 \\\hline \text { Unit variable costs } & \$ 100 \\\hline \text { Annual demand } & 1900 \text { units } \\\hline \text { Machine time } & 1.25 \text { hours per unit } \\\hline \text { Mid } & \\\hline \text { Unit sales price } & \$ 125 \\\hline \text { Unit variable costs } & \$ 80 \\\hline \text { Annual demand } & 5000 \text { units } \\\hline \text { Machine time } & \text { 4 hours per unit } \\\hline\end{array}$$ How many units of each racquet should be manufactured for the company to maximize its operating income? (Round your answer to the nearest whole unit.)

• A) 1900 units of Pro and 1244 units of Mid
• B) 1900 units of Pro and 656 units of Mid
• C) 1900 units of Pro and 5000 units of Mid
• D) 5000 units of Mid and 656 units of Pro

---

Definitions:

Threatens

To express an intention to inflict harm or punishment on someone or something.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, affecting economic, social, and cultural fields.

Medicalization

The process by which human conditions and behaviors are defined and treated as medical issues, often involving the use of medication or medical interventions.

Leprosy

A chronic infectious disease caused by Mycobacterium leprae, characterized by the long-term infection of the skin, nerves, respiratory tract, and eyes.