A Corporation Has a Division That Produces Two Models of Fireplace

question 125

Multiple Choice

A corporation has a division that produces two models of fireplace grates, model A and model B. To produce each model A grate requires 3 lb of cast iron and 6 min of labor. To produce each model B grate requires 4 lb of cast iron and 3 min of labor. The profit for each model A grate is $2.50, and the profit for each model B grate is $1.50. If 1,000 lb of cast iron and 20 labor-hours are available for the production of fireplace grates per day, how many grates of each model should the division produce in order to help maximize the division's profits?

• A) 120 model A, 160 model B; optimal profit $540
• B) 200 model A, 160 model B; optimal profit $950
• C) 0 model A, 250 model B; optimal profit $375
• D) 200 model A, 0 model B; optimal profit $500

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