Smash Company has 4,000 machine hours available annually to manufacture badminton racquets. The following information is available for the two different racquets produced by Smash: Pro Unit sales price $300 Unit variable costs $100 Annual demand 2,000 units Machine time 1.25 hours per unit Mid Unit sales price $150 Unit variable costs $80 Annual demand 5,000 units Machine time 2 hours per unit O A. 2,000 units of Pro and 5,000 units of Mid O B. 5,000 units of Mid and 750 units of Pro OC. 2,000 units of Pro and 750 units of Mid O D. 2,000 units of Pro and 1,250 units of Mid
Smash Company has 4,000 machine hours available annually to manufacture badminton racquets. The following information is available for the two different racquets produced by Smash: Pro Unit sales price $300 Unit variable costs $100 Annual demand 2,000 units Machine time 1.25 hours per unit Mid Unit sales price $150 Unit variable costs $80 Annual demand 5,000 units Machine time 2 hours per unit O A. 2,000 units of Pro and 5,000 units of Mid O B. 5,000 units of Mid and 750 units of Pro OC. 2,000 units of Pro and 750 units of Mid O D. 2,000 units of Pro and 1,250 units of Mid
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Smash Company has 4,000 machine hours available annually to manufacture badminton racquets. The following information is available for the two different racquets produced by Smash:
Pro
Unit sales price
$300
Unit variable costs
$100
Annual demand
2,000 units
Machine time
1.25 hours per unit
Mid
Unit sales price
$150
Unit variable costs
$80
Annual demand
5,000 units
2 hours per unit
Machine time
O A. 2,000 units of Pro and 5,000 units of Mid
O B. 5,000 units of Mid and 750 units of Pro
C. 2,000 units of Pro and 750 units of Mid
O D. 2,000 units of Pro and 1,250 units of Mid
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