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

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

Question description

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



Number of units



Sales revenue



Variable costs



Fixed costs



Net Income



Pounds of plastic to produce one bucket



Contribution margin per unit



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

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