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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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