To maximize profits, what product and how many units should the company produce in a month?
To maximize profits, what product and how many units should the company produce in a month?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question
Lie Around Furniture manufactures two products: Futons and Recliners. The following data are available:
The company can manufacture 3 futons per machine hour and 2 recliner per machine hour. The company's production capacity is 3500 machine hours per month.
To maximize profits, what product and how many units should the company produce in a month?
| | Futons | Recliners |
| Sales price | $550 | $700 |
| Variable costs | $350 | $395 |
To maximize profits, what product and how many units should the company produce in a month?
Question 36 options:
|
|
10,500 futons and 7000 recliners
|
|
|
7000 recliners
|
|
|
7000 futons and 6 recliners
|
|
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10,500 futons
|
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