Answer the Following Questions Using the Information Below:
Darwin's Rockers

question 152

Multiple Choice

Answer the following questions using the information below:
Darwin's Rockers manufactures two models,Deluxe and Super Deluxe.Weekly demand is estimated to be 100 units of the Deluxe Model and 70 units of the Super Deluxe Model.The following per unit data apply:
$$\begin{array} { l c c } & \text { Deluxe } & \text { Sumer Deluxe } \\\text { Contribution margin per unit } & \$ 18 & \$ 20 \\\text { Number of machine-hours required } & 3 & 4\end{array}$$
-If there are 600 machine-hours available per week,how many rockers of each model should Jim Darwin produce to maximise profits?

• A)100 units of Deluxe and 49 units of Super Deluxe
• B)85 units of Deluxe and 60 units of Super Deluxe
• C)100 units of Deluxe and 70 units of Super Deluxe
• D)72 units of Deluxe and 70 units of Super Deluxe

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, project, or financial product, often analyzed to assess the entity's liquidity, solvency, and financial viability.

Dissolved

The process of formally ending the existence of a business, partnership, or corporation.

Interest Rate

The percentage of an amount of money charged for its use per a certain period.

Perpetuity

A type of annuity that generates an infinite series of payments into the future, without an end date.