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Woodstock Furniture manufactures a small table and a large table. The small table sells for $ 9 0 0 , has variable costs of $
Woodstock Furniture manufactures a small table and a large table. The small table sells for $ has variable costs of $ per table, and takes direct labor hours to manufacture. The large table sells for $ has variable costs of $ and takes eight direct labor to manufacture. The company has a maximum of direct labor hours per month when operating at full capacity. If there are no constraints on sales of either product, and the company could choose any proportions of product mix that they wanted, what is the optimum product mix to maximize operating income of the company?
Selected Answer:
units of small and units of large
Correct Answer:
units of small and units of large
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