Custom Furniture Manufactures a Small Table and a Large Table

question 125

Multiple Choice

Custom Furniture manufactures a small table and a large table.The small table sells for $900,has variable costs of $560 per table,and takes ten direct labor hours to manufacture.The large table sells for $1,500,has variable costs of $980,and takes eight direct labor hours to manufacture.The company has a maximum of 5,000 direct labor hours per month when operating at full capacity.If there are no constraints on sales of either product,and the company could choose any proportions of product mix that they wanted,what is the optimum product mix to maximize operating income of the company?

• A)400 units of small and 125 units of large
• B)Zero units of small and 625 units of large
• C)100 units of small and 500 units of large
• D)500 units of small and zero units of large

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Definitions:

Overweight People

Individuals having a body weight more than what is considered healthy or normal, usually measured in terms of body mass index (BMI).

Equal Height

The condition of having the same vertical measurement or stature, often used in reference to buildings, structures, or individuals standing side by side.

Highest Status

refers to the top position or ranking in a social hierarchy based on various factors, including wealth, power, education, or social connections.

Antique Sculpture

A piece of three-dimensional art that is considered to be at least 100 years old, typically made from materials such as stone, metal, or wood, and valued for its historical and aesthetic importance.