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The local pie shop makes three pies: Apple, Blueberry and Cherry. The only have 600 hours of direct labor per week. They could sell the
The local pie shop makes three pies: Apple, Blueberry and Cherry. The only have 600 hours of direct labor per week. They could sell the following pies per week: Apple pie 600 units Blueberry pie 700 units Cherry pie 800 units The unit manufacturing costs are as follows: Cherry Blueberry Apple Selling price 16 $ 10 $ 20 $ Variable costs 10 $ 5 $ 18 $ Fixed manufacturing costs 6 $ 2 $ 1 $ Labor hours 0,4 h 0,2 h 0,4 h 1)Calculate how much of each pie would need to make to maximize its net profit.
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