Furniture Unlimited has the capability to manufacture desks, cabinets, and chairs. In order to manufacture these products, it must rent the appropriate equipment at a weekly cost of $2,000 for the desks, $2,500 for the cabinets, and $1,500 for the chairs. The labor and material requirements for each product are shown in the following table, along with the selling price and variable cost to manufacture.
|
|
Labor hours
|
Lumber (Sq. ft)
|
Sales Price
|
Variable Cost
|
|
Desk
|
3
|
10
|
$110
|
$82
|
|
Cabinets
|
4
|
12
|
$135
|
$97
|
|
Chairs
|
2
|
5
|
$50
|
$32
|
There are 2500 labor hours and 4,000 square feet of lumber available each week.
Determine the product mix that maximizes weekly profit.