Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
- 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.
- Given the information above, what would be the maximum profit the company can make?
- How many batches of each type of candy should Chocolate Extreme make?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started