Question

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 ​ $ 190
The company can manufacture either two food processors per machine hour or three espresso machines per machine hour. The​ company's production capacity is​ 1,600 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)?
A. 3,200 Food Processors and 4,800 Espresso Machines
B. 3,200 Food Processors and 0 Espresso Machines
C. 90 Food Processors and 105 Espresso Machines
D. 4,800 Espresso Machines and 0 Food Processors

Answer 1

D. 4,800 Espresso Machines and 0 Food Processors

The answer and procedures of the exercise are attached in a microsoft excel document.

Explanation

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.