Solved

A Company Sells Two Products with Information as Follows

Question 135

Multiple Choice

A company sells two products with information as follows: A company sells two products with information as follows:   Products are made by machine. 4 units of Product A can be made with one machine hour and 2 units of Product B can be made with one machine hour. The company has a maximum of 3,000 machine hours available per month. The company can sell up to 7,000 units of Product A per month, and up to 3,000 units of Product B for the month. What is the optimum product mix to maximize company's operating income? A) 2,000 units of A; 4,000 units of B B) 6,000 units of A; 3,000 units of B C) zero units of A; 3,000 units of B D) 12,000 units of A; zero units of B Products are made by machine. 4 units of Product A can be made with one machine hour and 2 units of Product B can be made with one machine hour. The company has a maximum of 3,000 machine hours available per month. The company can sell up to 7,000 units of Product A per month, and up to 3,000 units of Product B for the month. What is the optimum product mix to maximize company's operating income?


A) 2,000 units of A; 4,000 units of B
B) 6,000 units of A; 3,000 units of B
C) zero units of A; 3,000 units of B
D) 12,000 units of A; zero units of B

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions