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What the optimum production plan for multi resource is

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Reference no: EM132824088

Problem 1: The Multi Resource Company manufactures two lines of washing machines, Regular and Deluxe. The contribution margin per unit of a Regular model is $110 and for Deluxe Model is $175. The company has two departments, Assembly and Testing. The Regular Model requires 3 hours to assemble, while a Deluxe Model requires 4 hours. The total time available in Assembly is 12,000 hours. In the Testing Department, it requires 2.5 hours to test a Regular Model and 1.5 hours to test a Deluxe Model. A total of 6,000 hours of testing time is available. Based on this information, the optimum production plan for Multi Resource is:

Multiple Choice

option 1: 2,400 Regular Models

option 2: 1,091 Regular Models and 2,182 Deluxe Models

option 3: 4,000 Regular Models

option 4: 3,000 Deluxe Models

option 5: 4,000 Deluxe Models

Reference no: EM132824088

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