How many of each model should Delfi produce to maximize profit in May?

Nov 25th, 2015
Anonymous
Category:
Business Finance
Price: $5 USD

Question description



Delfi Company produces two models of seats, Toro and Prep. Information regarding these products for May follows:

Toro

Prep

Number of units

3,000

7,000

Sales revenue

$120,000

$140,000

Variable costs

60,000

42,000

Fixed costs

24,000

50,000

Net Income

$36,000

$48,000

Pounds of plastic to produce one bucket

4.0

1.6

Contribution margin per unit

$20

$14

Due to increased demand of plastic in the market, Delfi Company can obtain only 9,000 pounds of plastic per month. Delfi can sell as many seats as it can produce of either model. How many of each model should Delfi produce to maximize profit in May considering the constraint?

Question 17 options:

Toro: 0; Prep: 4,375

Toro: 2,250; Prep: 0

Toro: 1,125; Prep: 2,812

toro; 0;  prep: 5,625


Tutor Answer

(Top Tutor) anusha_reddy
School: Boston College

Studypool has helped 1,244,100 students

Review from student
Anonymous
" Top quality work from this guy! I'll be back! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1825 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors