Answer the following questions using the information below:
Darwin's Rockers manufactures two models,Deluxe and Super Deluxe.Weekly demand is estimated to be 100 units of the Deluxe Model and 70 units of the Super Deluxe Model.The following per unit data apply:
$$\begin{array} { l c c }
& \text { Deluxe } & \text { Sumer Deluxe } \
\text { Contribution margin per unit } & \$ 18 & \$ 20 \
\text { Number of machine-hours required } & 3 & 4
\end{array}$$
-If there are 496 machine-hours available per week,how many rockers of each model should Jim Darwin produce to maximise profits?
A)100 units of Deluxe and 49 units of Super Deluxe
B)100 units of Deluxe and 70 units of Super Deluxe
C)85 units of Deluxe and 60 units of Super Deluxe
D)72 units of Deluxe and 70 units of Super Deluxe

Question

Answer the following questions using the information below:
Darwin's Rockers manufactures two models,Deluxe and Super Deluxe.Weekly demand is estimated to be 100 units of the Deluxe Model and 70 units of the Super Deluxe Model.The following per unit data apply:
 $$\begin{array} { l c c } 
& \text { Deluxe } & \text { Sumer Deluxe } \
\text { Contribution margin per unit } & \$ 18 & \$ 20 \
\text { Number of machine-hours required } & 3 & 4
\end{array}$$
-If there are 496 machine-hours available per week,how many rockers of each model should Jim Darwin produce to maximise profits?
A)100 units of Deluxe and 49 units of Super Deluxe
B)100 units of Deluxe and 70 units of Super Deluxe
C)85 units of Deluxe and 60 units of Super Deluxe
D)72 units of Deluxe and 70 units of Super Deluxe

Quizplus · Accepted Answer

To maximize profits, Jim Darwin should produce at a ratio that fully utilizes the available machine-hours while adhering to the profit-maximizing production mix. Option A, with 100 units of Deluxe and 49 units of Super Deluxe, is the correct choice because it likely aligns with the constraints of machine-hour availability and the profit per unit for each model, ensuring that all available machine-hours are used efficiently to maximize profits.

Answer the Following Questions Using the Information Below: Darwin's Rockers

Answer the Following Questions Using the Information Below:
Darwin's Rockers