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Consider the following details for a manufacturing company producing two products, Theta and Iota: Product Theta: Selling price $140, variable cost $75, fixed cost $35
Consider the following details for a manufacturing company producing two products, Theta and Iota:
- Product Theta: Selling price $140, variable cost $75, fixed cost $35
- Product Iota: Selling price $210, variable cost $110, fixed cost $55
Determine the optimal production quantity for each product to maximize profit, given that the company can sell up to 3,500 units of each product and has a maximum of $80,000 in fixed costs. Provide a comprehensive explanation of your analysis.
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