Question
The Winery Company (WC) manufactures wine coolers. WC manufactures two types of coolers: Regular and Premium. The Premium wine cooler uses a thermoelectric system instead
The Winery Company (WC) manufactures wine coolers. WC manufactures two types of coolers: Regular and Premium. The Premium wine cooler uses a thermoelectric system instead of a compressor-powered cooling used in the Regular cooler. The thermoelectric system reduces the vibrations of the cooler, which may disturb the delicate sediments in fine wine. WC produces the compressor powered cooler, but purchases the thermoelectric system from Thermo, Inc for $50 per unit. Currently, WC produces and sells 1,000 units of each. The Premium cooler requires a special machine to install the thermoelectric system, which is operating at capacity.
The data for the two production units is given below.
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