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

question 43

Multiple Choice

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

• A) 100 units of Standard and 49 units of Premium
• B) 72 units of Standard and 70 units of Premium
• C) 100 units of Standard and 70 units of Premium
• D) 85 units of Standard and 60 units of Premium

---

Definitions:

Operating Cash Inflow

Cash generated from a company's primary business operations, excluding non-operational sources like investments or financing.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of maximizing a firm's value through strategic asset allocation.

Straight-Line Depreciation

A depreciation method where an asset's purchase cost is uniformly divided across its usable life, providing an equal expense charge each year.

After-Tax Discount Rate

The interest rate used to discount future cash flows to their present value after accounting for the effects of taxes.