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A firm makes two products, Alpha and Beta. Alpha Beta Sales price per unit $7.00 $10.00 Variable cost per unit $4.00 $8.00 Demand 5,000 4,000

A firm makes two products, Alpha and Beta.

Alpha

Beta

Sales price per unit

$7.00

$10.00

Variable cost per unit

$4.00

$8.00

Demand

5,000

4,000

Machine hours used

5

2

The total available machine hours is 10,000.

How many of Alpha should be in the product mix to maximize the profit?

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