Buzz Appliances manufactures two products: Food Processors and Espresso Machines. The following data are available: Food Processors Espresso Makers Sales price $125 $225 Variable costs $80 $190The company can manufacture two food processors per machine hour and three espresso machines per machine hour. The company's production capacity is 1600 machine hours per month. To maximize profits, what product and how many units should the company produce in a month (assuming unlimited demand for both products)? Question 22 options: 3200 Food Processors and 0 Espresso Machines 90 Food Processors and 105 Espresso Machines 3200 Food Processors and 4800 Espresso Machines 4800 Espresso Machines and 0 Food Processors
Buzz Appliances manufactures two products: Food Processors and Espresso Machines. The following data are available: Food Processors Espresso Makers Sales price $125 $225 Variable costs $80 $190The company can manufacture two food processors per machine hour and three espresso machines per machine hour. The company's production capacity is 1600 machine hours per month. To maximize profits, what product and how many units should the company produce in a month (assuming unlimited demand for both products)? Question 22 options: 3200 Food Processors and 0 Espresso Machines 90 Food Processors and 105 Espresso Machines 3200 Food Processors and 4800 Espresso Machines 4800 Espresso Machines and 0 Food Processors
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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Question
Buzz Appliances manufactures two products: Food Processors and Espresso Machines. The following data are available:
The company can manufacture two food processors per machine hour and three espresso machines per machine hour. The company's production capacity is 1600 machine hours per month.
To maximize profits, what product and how many units should the company produce in a month (assuming unlimited demand for both products)?
| Food Processors | Espresso Makers |
Sales price | $125 | $225 |
Variable costs | $80 | $190 |
To maximize profits, what product and how many units should the company produce in a month (assuming unlimited demand for both products)?
Question 22 options:
|
3200 Food Processors and 0 Espresso Machines
|
|
90 Food Processors and 105 Espresso Machines
|
|
3200 Food Processors and 4800 Espresso Machines
|
|
4800 Espresso Machines and 0 Food Processors
|
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