Question
. Nike produces the Air Court tennis shoe and the Air Max running shoe. Assume that one factory is the only facility that produces the
. Nike produces the Air Court tennis shoe and the Air Max running shoe. Assume that one factory is the only facility that produces the shoes and Nike managers must decide how many shoes of each type to produce. Machine time is the measure of capacity in this factory, and there is a maximum of 10,000 hours of machine time. The factory can produce 9 pairs of Air Court shoes or 6 pairs of Air Max shoes in 1 hour of machine time.
The selling price per unit of Air Court and Air Max are $70 and $130 respectively.
The variable costs per unit of Air Court and Air Max are $ 48 and $ 90 respectively.
Show with necessary calculations, the most profitable choice for the company.
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