Question
San Francisco Bay Company produces only two products (Product A and Product B). It is now the beginning of the current accounting period and San
San Francisco Bay Company produces only two products (Product A and Product B). It is now the beginning of the current accounting period and San Francisco Bay Company seeks to maximize its profits for the period. Production information for each product follows: Product A Product B Sales price per unit Variable costs per unit $30 $60 $18 $50 Units that can be produced each 10 15 machine hour San Francisco Bay Company also faces the following constraints in its current accounting period: 1. Only 3,000 machine hours are available for all products in the current accounting period. 2. Demand in the market for Product A is limited to 25,000 units. 3. Demand in the market for Product B is limited to 30,000 units. Given the information above, how many units of each product should San Francisco Bay Company produce in the current period in order to maximize its profits? Multiple Choice 10,000 units of Product A and 30,000 units of Product B 25,000 units of Product A and 30,000 units of Product B 25,000 units of Product A and 7,500 units of Product B 10,000 units of Product A and 10,000 units of Product B
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