Speed Tek produces two models of professional swim goggles-Jet and Spirit-both with fog-free acrylic lenses. Speed Tek has the following information regarding the products for the month of July:
a. If Speed Tek has no current production constraints, and wishes to maximize its operating income, which product should it produce more of?
b. If Speed Tek is limited to 4,000 machine hours, which of the products should it produce to maximize its net income?
c. If Speed Tek were able to get an additional 10,000 machine hours, but only has demand for the current production in units, which combination of products should it produce?

Question

Speed Tek produces two models of professional swim goggles-Jet and Spirit-both with fog-free acrylic lenses. Speed Tek has the following information regarding the products for the month of July:  
a. If Speed Tek has no current production constraints, and wishes to maximize its operating income, which product should it produce more of?
b. If Speed Tek is limited to 4,000 machine hours, which of the products should it produce to maximize its net income?
c. If Speed Tek were able to get an additional 10,000 machine hours, but only has demand for the current production in units, which combination of products should it produce?

Quizplus · Accepted Answer

The Answer of Speed Tek produces two models of professional swim goggles-Jet and Spirit-both with fog-free acrylic lenses. Speed Tek has the following information regarding the products for the month of July:  
a. If Speed Tek has no current production constraints, and wishes to maximize its operating income, which product should it produce more of?
b. If Speed Tek is limited to 4,000 machine hours, which of the products should it produce to maximize its net income?
c. If Speed Tek were able to get an additional 10,000 machine hours, but only has demand for the current production in units, which combination of products should it produce?

Speed Tek Produces Two Models of Professional Swim Goggles-Jet and Spirit-Both