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 $400
Unit variable costs $100
Annual demand 2,000 units
Machine time 1.5 hours per unit
Mid
Unit sales price $100
Unit variable costs $70
Annual demand 5,000 units
2 hours per unit

How many units of each racquet should be manufactured for the company to maximize its operating income?
A) 2,000 units of Pro and 1,500 units of Mid
B) 2,000 units of Pro and 500 units of Mid
C) 2,000 units of Pro and 5,000 units of Mid
D) 5,000 units of Mid and 500 units of Pro

B .B)
Pro Mid
Sales revenue $400 $100
Variable cost 100 70
Contribution margin per unit $300 $30
Limiting factor 1.5 2
Contribution margin per unit per hour $200 $15

No. of units Hours required
Pro (2,000 x 1.5 ) 2,000 3,000
Mid (1,000 / 2 ) 500 1,000