Response to the following problem:
Mama's Favorite Appliances manufactures two products: Food Processors and Espresso Machines. The following data are available:
| |
Food Processors |
Espresso Makers |
|
Sales price
|
$125
|
$225
|
|
Variable costs
|
$50
|
$150
|
The company can manufacture two food processors per machine hour and three espresso machines per machine hour. The company's production capacity is 1,200 machine hours per month.
To maximize profits, what product and how many units should the company produce in a month?