Question: Sun Devil Golf Balls produces two types of golf balls

Sun Devil Golf Balls produces two types of golf balls: the pro model and the tour model. The balls are sold to retailers in cartons containing 360 balls (30 boxes containing 4 sleeves per box, with each sleeve holding 3 balls). Both models are made using the same machines. It takes 15 minutes of machine time to produce 360 pro model golf balls, whereas it takes 30 minutes to produce the same number of the tour model balls. The difference in production time results mainly from the different materials used in construction. The relevant data concerning the two models are as follows:

A. If the amount of machine time available to Sun Devil Golf Balls is limited, which golf ball should be produced in the larger quantity?
B. If the total machine time available is 110 hours per month and the demand for each model of golf ball is 108,000 balls per month, how many of each model should be produced to maximize profit? (Round your answer to the nearest carton.)
C. What other factors should be considered in this decision, and how would they impact thedecision?

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  • CreatedMarch 11, 2015
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