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Santora Company manufactures two products long dash-toaster ovens and bread machines. The following data are available:
Toaster Ovens
Bread Machines
Sales price
$60
$$150
Variable costs
$30
Santora can manufacture six toaster ovens per machine hour and four bread machines per machine hour. Santora's production capacity is 1,800 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?
Logic Behind IFE Investors based in the U.S. can earn 11% interest on a one-year bank deposit in Argentina (with no default risk) or 2% on a one-year U.S. bank deposit in the U.S. (with no default risk).
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