Question

The company can manufacture two food processors per machine hour and three espresso machines per machine hour. The company's production capacity is 1,200 machine hours per month.To maximize profits, what product and how many units should the company produce in a month

Answer 1

3,600 Espresso Machines and 0 Food Processors

Step-by-step explanation:

The computation is shown below:

Particulars Food processers Espresso machines

Sales $125 $225

Less: Variable cost -$50 $150

Contribution margin $75 $75

Units per machine hour 2 3

CM per machine hour $50 $225

rank 2 1

Here the expresso machines should be chosen

Also the number of units would be

= 1,200 × 3

= 3,600

Hence, 3,600 Espresso Machines and 0 Food Processors