Expert answer:How many of each model should Delfi produce to max

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Answer & Explanation:Delfi Company produces two models of seats, Toro and Prep. Information regarding these products for May follows:ToroPrepNumber of units3,0007,000Sales revenue$120,000$140,000Variable costs60,00042,000Fixed costs24,00050,000Net Income$36,000$48,000Pounds of plastic to produce one bucket4.01.6Contribution margin per unit$20$14Due to increased demand of plastic in the market, Delfi Company can obtain only 9,000 pounds of plastic per month. Delfi can sell as many seats as it can produce of either model. How many of each model should Delfi produce to maximize profit in May considering the constraint?Question 17 options:Toro: 0; Prep: 4,375Toro: 2,250; Prep: 0Toro: 1,125; Prep: 2,812toro; 0; prep: 5,625

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