Kinnane's Fine Furniture manufactures two models, Standard and Premium. Weekly demand is estimated to be 106 units of the Standard Model and 74 units of the Premium Model. The following per unit data apply: Standard Premium Contribution margin per unit $21 $24 Number of machine−hours required 3 6 If there are 495 machine−hours available per week, how many rockers of each model should KInnance produce to maximize profits?
Kinnane's Fine Furniture manufactures two models, Standard and Premium. Weekly demand is estimated to be 106 units of the Standard Model and 74 units of the Premium Model. The following per unit data apply: Standard Premium Contribution margin per unit $21 $24 Number of machine−hours required 3 6 If there are 495 machine−hours available per week, how many rockers of each model should KInnance produce to maximize profits?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Kinnane's Fine Furniture manufactures two models, Standard and Premium. Weekly demand is estimated to be 106 units of the Standard Model and 74 units of the Premium Model. The following per unit data apply:
|
Standard
|
Premium
|
|
Contribution margin per unit
|
$21
|
$24
|
|
Number of
machine−hours
required |
3
|
6
|
|
If there are 495
machine−hours
available per week, how many rockers of each model should KInnance produce to maximize profits?Expert Solution
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