Problem
The Rural Life Association is an NFPO that purchases and re-sells two blends of coffee to raise funds: regular and deluxe. Weekly demand is estimated to be 100 units of regular and 50 units of deluxe coffee. Only 220 machine hours are available per week to grind and package the coffee. The following per unit data apply:
|
|
Regular
|
Deluxe
|
|
Contribution margin per unit
|
$9
|
$10
|
|
Number of machine hours required per unit
|
1.5
|
2
|
Task
Calculate how many units of each product should be produced each week to maximize profits.