Question - Lie Around Furniture manufactures two products: Futons and Recliners. The following data are available:
Futons Recliners
Sales price $ 530.00 $ 710.00
Variable costs $ 380.00 $ 405.00
The company can manufacture 3 futons per machine hour and 2 recliner per machine hour. The company's production capacity is 4,100 machine hours per month.
To maximize profits, what product and how many units should the company produce in a month?
A. 12,300 futons and 8,200 recliners
B. 12,300 futons
C. 8,200 futons and 6 recliners
D. 8,200 recliners