e e Secure httpsw math lc mStudentPlayerTest aspxtc profile

e - e Secure https/w .math lc m/Student/PlayerTest aspx?tc profile url https%3a%2f%2fus blackboard com%2 earn%2fap %2N1%2flt %2fprofile%3flti veron%3d ACCT 202- Routh, Summer 2018 (online) Mitchell M Test: Exam (Module 4 - ch. 8, 9) Time Ren This Question: 3 pts | 1 of 8 (0 complete) ? | Lie Around Furniture manufactures two products: Couches and Beds. The following data are available Couches S540.00 $720.00 Beds Sales price ariable costs $370.00 $375.00 The company can manufacture 3 couches per machine hour and 2 bed per machine hour. The company\'s production capacity is 5300 machine hours To maximize profits, what product and how many units should the company produce in a month? OA. 15.900 couches B. 10,600 couches and 15.900 beds O C. 10.600 beds 0 D. 15.900 couches and 10.600 beds ?

Solution

Since the company\'s limited production capacity is 5300 hours per month. So the company should produce either one product only or limited units of product Couches and limited units of Beds.

Profit per unit

Couches = $540- $370

= $170

Beds = $720- $375

= $345

As according to the options

A. If company produces 15900 couches, then profit is (15900*170) $2,703,000.

B. If company produces 10600 couches and 15900 beds. So it is not possible to produce both product within limited hours. So, it is not correct.

C. If company produces 10600 beds. So the profit is (10600*345) $3,657,000.

D. It is not possible to produce both the product. So it is not correct.

Option C is the right answer because maximum profit on producing all the units of Beds.