Calculate the number of units of product

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Reference no: EM131692109

Betty DeRose, Inc. produces and sells two products, L and V. Revenue and cost information for the two products from last month appear below:

Product L Product V

selling price per unit ........... $15.00 $12.00

variable costs per unit .......... $ 8.00 $ 7.00

For the coming month, Betty would like to use linear programming in order to maximize monthly profits.

Each month Betty has 80,000 direct labor hours available and 60,000 machine hours available. Product L requires 5 direct labor hours for each unit and

2 machine hours for each unit. Product V requires 4 direct labor hours for each unit and 8 machine hours for each unit.

Calculate the number of units of Product L that should be produced in order to maximize net income. Do not use the $, decimals, or type the word units after your answer.

Reference no: EM131692109

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