Question
Spencer Hall currently makes 6 candy sticks that it sells for $.20 each. Henry can make 12 candy sticks out of two 6 candy sticks
Spencer Hall currently makes 6" candy sticks that it sells for $.20 each. Henry can make 12" candy sticks out of two 6" candy sticks by melting them together, which costs an additional $.03 per 12" stick. Henry can sell the 12" sticks for $.45. Henry has enough capacity to make 10,000 6" candy sticks per month, and enough demand to sell all the candy sticks it can manufacture, whether 6" or 12". Should Spencer sell 6" or 12" candy sticks, and how much additional profit will their decision bring in per month?
Select one:
a. Sell 6" sticks, additional $100
b. Sell 6" sticks, additional $250
c. Sell 12" sticks, additional $100
d. Sell 12" sticks, additional $250
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