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

Nov 25th, 2015
Anonymous
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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: 2,812toro; 0;  prep: 5,625

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