Solve the Problem. -The Old-World Class Ring Company Designs and Sells Two Types

question 10

Multiple Choice

Solve the problem.
-The Old-World Class Ring Company designs and sells two types of rings: the BRASS and the GOLD. They can produce up to 24 rings each day using up to 60 total man-hours of labor. It takes 3 man-hours to make one
BRASS ring and 2 man-hours to make one GOLD ring. How many of each type of ring should be made daily to
Maximize the company's profit, if the profit on a BRASS ring is $40 and on an GOLD ring is $30?

• A) 14 BRASS and 10 GOLD
• B) 12 BRASS and 12 GOLD
• C) 14 BRASS and 14 GOLD
• D) 10 BRASS and 14 GOLD

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Definitions:

Profit-maximizing

A strategy or approach that aims to achieve the highest possible profit from business activities.

Marginal Revenue

The revenue increase from selling an additional good or service unit.

Competitive Price-searcher

A market condition where firms have some control over pricing because their products are differentiated, but they must still consider competitors' prices in their pricing strategy.

Retail Selling

The process of selling goods or services directly to consumers through various channels, such as stores, online platforms, or by phone.