The fixed costs incurred in the factory are 1000 per year

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Reference no: EM13590078

Delaware Valley Hula Hoops produces four products. Data concerning the selling prices and unit cost of the four products appears below:

Selling Price	$5	$4	$9	$7
	A	B	C	D
Variable Costs	4	3	6	5
Machine time	4 min.	5 min.	6 min.	3 min.
Demand per week	600 units	1,000 units	200 units	200 units

The fixed costs incurred in the factory are $1,000 per year. Demand for the three products exceeds the company's productive capacity. The machine time is the constraint, with only 4,800 minutes of machine time available each week.

Required: Determine the production level of A, B, C and D that will maximize profits.

Reference no: EM13590078

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