How many units of bright crayons should be manufactured

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Question - Crayon Co. can sell as many units of its two products, bright and standard, as it can produce. It can produce 250 units of bright crayons per hour of 400 units of the standard crayons per hour. Bright crayons sell for $2.40 each and standard crayons sell for $1.84 each. Variable costs for bright crayons are $0.49 per crayon, and variable costs for standard crayons are $0.38 per crayon. Crayon Co. only has one machine and can only use 1200 hours of production per month. Based on this information, you should determine the most profitable mix of crayons to be produced. Under this mmix, how many units of bright crayons should be manufactured?

Reference no: EM132969606

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