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Modern Cook Company manufactures two products: Toaster Ovens and Bread Machines. The following data are available: Selling price per unit Variable costs per unit Toaster
Modern Cook Company manufactures two products: Toaster Ovens and Bread Machines. The following data are available: Selling price per unit Variable costs per unit Toaster Ovens (TO) Bread Machines (BM) $400 $650 $280 $450 Toaster ovens each unit requires 5 machine hours while bread machines each unit requires 8 per machine hours. Modern Cook's production capacity is 16,000 machine hours per month. Requirements: 1- Indicate which product should the company consider as priority to reach best sales mix? Give the reason? 2- Assume Modern Cook can sell as many units of either type as it can produce. how many units from each product should the company produce to maximize profits? 3- how many units should the company produce from both products to maximize profits assume market demands of Toaster Ovens is 1,000 units and of Bread Machine is 400 units
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