A product mix example
Quick-Screen is a clothing manufacturing company that specializes in producing commemorative shirts immediately following major sporting events such as the World Series, Super Bowl, and Final Four. The company has been contracted to produce a standard set of shirts for the winning team, either State University or Tech, following a college football bowl game on New Year's Day. The items produced include two sweatshirts, one with silk-screen printing on the front and one with print on both sides, and two T-shirts of the same configuration. The company has to complete all production within 72 hours after the game, at which time a trailer truck will pick up the shirts. The company will work around the clock. The truck has enough capacity to accommodate 1,200 standard-size boxes. A standard-size box holds 12 T-shirts, and a box of 12 sweatshirts is three times the size of a standard box. The company has budgeted $25,000 for the production run. It has 500 dozen blank sweatshirts and T-shirts each in stock, ready for production. The company wants to know how many dozen (boxes) of each type of shirt to produce in order to maximize profit