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Smash Company Has 4000 Machine Hours Available Annually to Manufacture

question 27

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Smash Company has 4000 machine hours available annually to manufacture badminton racquets. The following information is available for the two different racquets produced by Smash:  Pro  Unit sales price $300 Unit variable costs $150 Annual demand 1800 units  Machine time 1.25 hours per unit  Mid  Unit sales price $100 Unit variable costs $70 Annual demand 5000 units  Machine time  6 hours per unit \begin{array}{|l|r|}\hline \text { Pro }\\\hline \text { Unit sales price } & \$ 300 \\\hline \text { Unit variable costs } & \$ 150 \\\hline \text { Annual demand } & 1800 \text { units } \\\hline \text { Machine time } & 1.25 \text { hours per unit } \\\hline \text { Mid } & \\\hline \text { Unit sales price } &\$ 100\\\hline \text { Unit variable costs } & \$ 70 \\\hline \text { Annual demand }& 5000 \text { units } \\\hline\text { Machine time }& \text { 6 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.)


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Fairness Doctrine

A former policy of the United States Federal Communications Commission that required the holders of broadcast licenses to present controversial issues of public importance in a manner that was, in the FCC's view, honest, equitable, and balanced.

Supreme Court

The highest federal court in the United States, consisting of nine justices and having jurisdiction over cases of constitutional and federal law.

Red Lion Broadcasting

A landmark Supreme Court case, Red Lion Broadcasting Co. v. FCC (1969), that upheld the Federal Communications Commission's authority to enforce the Fairness Doctrine in broadcasting.

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A former National Security Agency contractor who leaked classified information about global surveillance programs conducted by the US government.

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