Question
Buzz Appliances manufactures two products: Food Processors and Espresso Machines. The following data are available: Food Processors Espresso Makers Sales price $175 $235 Variable costs
Buzz Appliances manufactures two products: Food Processors and Espresso Machines. The following data are available:
Food Processors | Espresso Makers | |
Sales price | $175 | $235 |
Variable costs | $100 | $170 |
The company can manufacture either two food processors per machine hour or three espresso machines per machine hour. The company's production capacity is 1,300 machine hours per month.
To maximize profits, what product and how many units should the company produce in a month (assuming unlimited demand for both products)
A. 150 Food Processors and 195 Espresso Machines
B. 2,600 Food Processors and 0 Espresso Machines
C. 2,600 Food Processors and 3,900 Espresso Machines
D. 3,900 Espresso Machines and 0 Food Processors
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started