Reference no: EM132470862
Barter
Point 1: Barter Wood Company makes a regular and a deluxe grade of wood floors. Regular grade is sold at $ 19
Point 2: $19 per square? yard, and the deluxe grade is sold at $ 30
Point 3: $30 per square yard. The variable cost of making the regular grade is $ 8
Point 4: $8 per square yard. It costs an extra $ 5
Point 5: $5 per square yard to make the deluxe grade. It takes 20
Point 6: 20 labor hours to make 100
Point 7: 100 square yards of the regular? grade, and 25
Point 8: 25 labor hours to make 100
Point 9: 100 square yards of the deluxe grade. There are 4 comma 800
Point 10: 4,800 hours of labor time available for production each week. The maximum weekly sales for the regular and the deluxe model are 25 comma 000
Point 11: 25,000 and 7 comma 000
Point 12: 7,000 square? yards, respectively. Fixed production costs total $ 550 comma 000
Point 13: $550,000 per year. All selling costs are fixed.
Requirement
Question 1: What is the optimal production level in number of square yards for each? product?