Question
Olivia Products Company produces two types of water filters. One attaches to the faucet and cleans all water that passes through the faucet. The
Olivia Products Company produces two types of water filters. One attaches to the faucet and cleans all water that passes through the faucet. The other is a pitcher- cum-filter that only purifies water meant for drinking. The unit that attaches to the faucet is sold for $100 and has variable costs of $55. The pitcher-cum-filter sells for $130 and has variable costs of $70. Kamp sells 40% faucet models and 60% pitchers model. Fixed costs equal $1,600,000. How many units of Faucet model and Pitcher model, respectively, does Kamp need to sell in order to make $1,100,000 profit?
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