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Required Questions: Ford Company has offered to produce either Trucks or Cars for Auto Company. Ford Company is a reliable supplier and can offer a

image text in transcribedRequired Questions: Ford Company has offered to produce either Trucks or Cars for Auto Company. Ford Company is a reliable supplier and can offer a supply price for each product that is 160% of Auto Companys variable cost. Because supplying Auto Company would require that Ford company adjust production line, it is only willing to supply units of either Trucks or Cars. Should Auto Company accept the offer to Supply Tucks or Cars and how many units should the company buy to maximize total income? What would be the expected total income?

Auto Company produces two products, Trucks and Cars. The following table provides information about the two products and budget sales for the upcoming year. Auto Company keeps no finished inventory, so production equals sales

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