Each finishing makes various metal fittings for the construction industry. Three of the fittings, models X-12, X-24, and X-30, require grinding on a patented machine of which Leach has only one. The cost of production information for the three products follows:
X-12: Price per fitting: 40, Variable cost per fitting: 25, Units per hour of grinding: 18.0
X-24: Price per fitting: 56, Variable cost per fitting: 32, Units per hour of grinding: 12.5
X-30: Price per fitting: 75, Variable cost per fitting: 49, Units per hour of grinding: 10.0
The testing machine used for both models has a capacity of 3,530 hours annually. Fixed manufacturing costs are 506,000 annually.
What is the maximum profit that can be generated from grinding the X-24 model fittings annually?
a) 52,150
b) 53,220
c) 54,290
d) 55,360
