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A. C .Tech Manufacturing Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below. Small Medium Large Unit selling
A. C .Tech Manufacturing Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below.
Small | Medium | Large |
Unit selling price | $430 | $550 | $1,230 |
Unit costs:
Variable manufacturing | (200) | (320) | (700) |
Fixed manufacturing | (50) | (140) | (240) |
Fixed selling and administrative | (90) | (25) | (130) |
Unit profit | $90 | $65 | $160 |
Demand in units | 170 | 130 | 170 |
Machine-hours per unit | 70 | 40 | 170 |
The maximum machine-hours available are 6,200 per week. How many of each product should be produced per month using the short-run profit maximizing strategy?
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