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:

Amount Paid

The total sum of money dispensed for goods or services.

Asterisk (*)

A symbol used to denote multiplication in mathematics, to indicate a footnote or special note in text, or to mask letters in sensitive words.

Criterion

A standard or principle by which something can be judged or decided.

Text Data

Information that is composed entirely of characters, letters, and numbers without any structured format such as images or audio.