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What production combination will produce the greatest profit for the firm?

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What production combination will produce the greatest profit for the firm? Justify your choice.;See attached file.;The HighTech Corporation manufactures sound systems for the;retail market. It makes two product lines: super model and deluxe;model. Annual cost and production information is summarized below;Total budgeted fixed manufacturing costs: $100,000;Total budgeted fixed selling costs $ 50,000;Hours of production capacity available each year 20,000;hours;Super Model Deluxe Model;Unit Selling Price $ 600 $ 1,200;Variable Costs per unit 300 600;Contribution margin per unit $ 300;$ 600;The market will permit the firm to sell as much or as little of each;model that the firm wishes to manufacture. It takes 10 hours to make a;super model and it takes 24 hours to make a deluxe model.;REQUIRED;What production combination will produce the greatest profit for the;firm? Justify your choice.

 

Paper#25535 | Written in 18-Jul-2015

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