Bandy Corporation Owns a Machine That Manufactures Lawn Game Sets

question 121

Multiple Choice

Bandy Corporation owns a machine that manufactures lawn game sets. Production time for the croquet set is 10 units per hour and for the volleyball set is 8 units per hour. The machine's capacity is 1,500 hours per year. Both products are sold to a single customer who has agreed to buy all of the company's output up to a maximum of 4,000 croquet sets and 10,000 volleyball sets. Selling prices and variable costs per unit are shown below. Based on this information, what is Bandy Corporation's most profitable sales mix?

• A) 15,000 croquet sets.
• B) 12,000 volleyball sets.
• C) 4,000 croquet sets and 10,000 volleyball sets.
• D) 4,000 croquet sets and 8,800 volleyball sets.
• E) 2,500 croquet sets and 10,000 volleyball sets.

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Definitions:

Buyer-seller Relationships

The dynamic interactions and transactions between buyers and sellers, often emphasizing cooperation, trust, and communication for long-term engagement.

Individuality

The quality or character of a particular person or thing that distinguishes them from others, emphasizing uniqueness and personal identity.

Interactivity

The feature of a system or process that allows for two-way exchanges of information between users or between users and computers.

Collaborative Filtering

A technique used by recommendation systems to predict a user's interests by collecting preferences from many users.