Smash Company Has 5000 Machine Hours Available Annually to Manufacture

question 22

Multiple Choice

Smash Company has 5000 machine hours available annually to manufacture badminton racquets.The following information is available for the two different racquets produced by Smash: $$\begin{array} { | l | l | } \hline \text { Pro } & \\\hline \text { Unit sales price } & \$ 300 \\\hline \text { Unit variable costs } & \$ 100 \\\hline \text { Annual demand } & 1900 \text { units } \\\hline \text { Machine time } & 1.25 \text { hours per unit } \\\hline \text { Mid } & \\ \hline \text { Unit sales price } & \$ 125 \\\hline \text { Unit variable costs } & \$ 80 \\\hline \text { Annual demand } & 5000 \text { units } \\\hline \text { Machine time } & 4 \text { hours per unit } \\\hline\end{array}$$ 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) 1900 units of Pro and 1244 units of Mid
• B) 1900 units of Pro and 656 units of Mid
• C) 1900 units of Pro and 5000 units of Mid
• D) 5000 units of Mid and 656 units of Pro

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