Question

The Production Supervisor for a Manufacturing firm is planning the production of two electronic devices: Radio's (R) and Sensors (S). Profits for the Radios are $8.00 per unit, and profits for the Sensors are $5.00 per unit. If the supervisor needs to maximize profits, which combination of Radio (R) and Sensor (S) production should they consider?

Answer 1

To maximize profits, the Production Supervisor should focus on producing more Radios.

Step-by-step explanation:

In order to maximize profits, the Production Supervisor should consider the combination of Radio (R) and Sensor (S) production that offers the highest profit per unit. Since the profit for Radios is $8.00 per unit and the profit for Sensors is $5.00 per unit, we need to compare the two to determine which one yields a higher profit.

By calculating the profit per unit for each: profit per Radio = $8.00 and profit per Sensor = $5.00, we find that producing Radios would yield a higher profit.

Therefore, the Production Supervisor should focus on producing more Radios to maximize profits.