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Product Mix with Limited Resources: Chocolate Extreme sells both hard candy and chocolate candy. It currently takes 1 hour to produce a batch of chocolate

  1. Product Mix with Limited Resources: Chocolate Extreme sells both hard candy and chocolate candy. It currently takes 1 hour to produce a batch of chocolate candy, and 2 hours to produce a batch of hard candy. Given the current factory space, the company can work a total of 600 hours per month. The company feels that the current demand for chocolate candy would support the sale of up to 400 batches per month, while current demand for hard candy would support the sale of up to 300 batches per month. Current selling price for Chocolate is $7.50 per batch, with variable costs of $2.50 per batch, and current selling price for a batch of hard candy is $9.00 per batch, with variable costs of $3 per batch.

  1. Given the information above, what would be the maximum profit the company can make?
  2. How many batches of each type of candy should Chocolate Extreme make?

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