Transcribed Image Text: Company X manufactures four different types of toys for kids including cars, bikes, plane

Transcribed Image Text: Company X manufactures four different types of toys for kids including cars, bikes, plane
and ship. The gross margin, production, and profit are listed below for each items are shown
below:
Product
Gross margin/unit
Minutes/unit
Gross margin/minute
Maximum production 280000 112000
Profit
Car
Bike
Plane
Ship
0.3
1.3
0.75
1.2
1
2.5
1.5
2
0.30
0.52
0.50
0.60
18667
140000
84000 145600
14000
168000
Let the production capacity of the machine used for production is 4500 hours per year.
Which of the following would be the minimum value of gross margin per minute of ship
that would make it economical for production?
(A)0.65
(B) 0.70
(C) 0.87
(D) Can’t be determined

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