The Badminton Company Has 4000 Machine Hours Available Annually to Manufacture

question 103

Multiple Choice

The Badminton Company has 4000 machine hours available annually to manufacture racquets.The following information is available for the two different racquets produced by Badminton:
$$\begin{array} { | l | l | } \hline \text { Pro } & \\ \hline \text { Unit sales price } & \$ 300 \\\hline \text { Unit variable costs } & \$ 150 \\\hline \text { Annual demand } & 1800 \text { units } \\\hline \text { Machine time } & 1.25 \text { hours per unit } \\\hline \text { Mid } & \\ \hline \text { Unit sales price } & \$ 125 \\\hline \text { Unit variable costs } & \$ 80 \\\hline \text { Annual demand } & 5000 \text { units } \\\hline \text { Machine time } & 6 \text { hours per unit } \\\hline\end{array}$$
How many units of each racquet should be manufactured for the company to maximise its operating profit?

• A) 1800 units of Pro and 1508 units of Mid
• B) 5000 units of Mid and 292 units of Pro
• C) 1800 units of Pro and 5000 units of Mid
• D) 1800 units of Pro and 292 units of Mid

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Definitions:

Randomness

The lack of pattern or predictability in events.

System

A set of interacting or interdependent components forming an integrated whole, often within a scientific or engineering context.

ΔG°

The standard change in Gibbs free energy associated with a chemical reaction at standard conditions, indicative of the reaction's spontaneity.

Transformation

In chemistry, it refers to a change in the chemical structure of a molecule through a chemical reaction.