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Consider the following details for a manufacturing company producing two products, Gamma and Delta: Product Gamma: Selling price $100, variable cost $55, fixed cost $25
Consider the following details for a manufacturing company producing two products, Gamma and Delta:
- Product Gamma: Selling price $100, variable cost $55, fixed cost $25
- Product Delta: Selling price $150, variable cost $80, fixed cost $40
Determine the optimal production quantity for each product to maximize profit, given that the company can sell up to 2,500 units of each product and has a maximum of $60,000 in fixed costs. Provide a thorough explanation of your analysis.
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