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How many units should kitchen appliances company produce

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Reference no: EM132825273

Kitchen Appliances Company manufactures two products: toaster ovens and bread machines. The following data are available:

                                       Toaster Ovens          Bread Machines
Sales price                         $100                    $200
Variable costs                        $30                $150

The company can manufacture three toaster ovens per machine hour and two bread machines per machine hour. The company's production capacity is 1,200 machine hours per month.

Problem 1: To maximize profits, what product and how many units should Kitchen Appliances Company produce in a month?

Reference no: EM132825273

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