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A company sells two products with information as follows: A B Sales price per unit $11 $28 Variable cost per unit $10 $10 The products
A company sells two products with information as follows:
A | B | |
Sales price per unit | $11 | $28 |
Variable cost per unit | $10 | $10 |
The products are machine made. Four units of product A can be made with one machine hour and two units of product B can be made with one machine hour. The company has a maximum of 3,000 machine hours available per month. The company can sell up to 18,000 units of product A per month, and up to 3,000 units of product B for the month. What is the optimum product mix to maximize company's operating income?
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