Smash Company Has 5,000 Machine Hours Available Annually to Manufacture

question 118

Multiple Choice

Smash Company has 5,000 machine hours available annually to manufacture badminton racquets.The following information is available for the two different racquets produced by Smash: $$\begin{array} { | l | r | } \hline \text { Pro } & \\ \hline \text { Unit sales price } & \$ 500 \\\hline \text { Unit variable costs } & \$ 150 \\\hline \text { Annual demand } & 1,900 \text { units } \\\hline \text { Machine time } & \text { 1 hours per unit } \\\hline \text { Mid } & \\ \hline \text { Unit sales price } & \$150\\\hline \text { Unit variable costs } &\$60\\\hline \text { Annual demand } & 4,000 \text { units }\\\hline & \text { 2 hours per unit } \\\hline\end{array}$$ 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.)

• A) 1,900 units of Pro and 350 units of Mid
• B) 1,900 units of Pro and 1,550 units of Mid
• C) 1,900 units of Pro and 4,000 units of Mid
• D) 4,000 units of Mid and 1,550 units of Pro

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Definitions:

LEO

Stands for Low Earth Orbit, a satellite's orbit relatively close to Earth's surface, typically at altitudes less than 2,000 kilometers, used for telecommunications, military, and observation purposes.

MEO

Medium Earth Orbit, referring to satellites that orbit the earth at altitudes in a range typically between 2,000 and 35,786 kilometers, used for communications, navigation, and earth observation.

VEO

An acronym that requires specification for an accurate definition as it could stand for various concepts depending on the context.

Orbital Life

The concept of living and working in space in orbit around Earth or another celestial body.