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ABC Electronic Co. is trying to determine how many TVs and stereos to make for the coming year. The company can sell each TV for
ABC Electronic Co. is trying to determine how many TVs and stereos to make for the coming year. The company can sell each TV for $1000 and each stereo for $500. The variable costs to produce the TV are $650, while the variable costs for the stereo are $250. The number of TVs produced cannot be greater than 1000 due to the space restriction in the warehouse; however, stereos are smaller and there is room for 5000. It takes 6 machine hours to make each TV and 4 machine hours to make each stereo. The factory has 25000 machine hours available per year. Let T = TVs and S = stereos. How many of each should ABC Electronic Co. produce in order to maximize its contribution margin
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