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A company has 10,000 hours of capacity and manufactures two products. Product 1 takes 2 hours per unit. Product 2 takes 3 hours per unit.
A company has 10,000 hours of capacity and manufactures two products. Product 1 takes 2 hours per unit. Product 2 takes 3 hours per unit. Product 1 sells for $8 per unit and has $3 per unit variable costs. Product 2 sells for $16 per unit and has $10 per unit variable costs. The demand for either product exceeds the factory capacity. Which product or products should be manufactured?
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