Question

Production data for the number of hours required per unit for making the Droid and iPhone versions of cell phone components by Bizzer, a high-tech manufacturing firm, is given below. Suppose the plant decides exclusively to make either the maximum number of iPhone components or the maximum number of Droid phones. Which choice will result in the greater profit?

Monthly Product


Droid iPhone Capacity (Hours)
Design 5 8 5000
Manufacture 2.5 2.5 2500
Profit per unit $4 $6

A) Making Droid units will result in $4000 more profit.

B) Making iPhone units will result in $250 more profit.

C) Making Droid units will result in $250 more profit.

D) Making iPhone units will result in $3750 more profit.

Answer

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