Santora Company manufactures two products—toaster ovens and bread machines. The following data are available:   Toaster Ovens Bread Machines Sales price $70 $170 Variable costs $50 $70   Santora can manufacture six toaster ovens per machine hour and four bread machines per machine hour. Santora's production capacity is 1600 machine hours per month, and it can sell as many units of either type as it can produce. Which product and how many units should the company produce in a month to maximize profits? (Round machine hour per unit to two decimal places and your final answer to the nearest whole dollar.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Santora Company manufactures two products—toaster ovens and bread machines. The following data are available:

 

Toaster Ovens Bread Machines

Sales price $70 $170

Variable costs $50 $70

 

Santora can manufacture six toaster ovens per machine hour and four bread machines per machine hour. Santora's production capacity is 1600 machine hours per month, and it can sell as many units of either type as it can produce. Which product and how many units should the company produce in a month to maximize profits? (Round machine hour per unit to two decimal places and your final answer to the nearest whole dollar.)

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