National Business Machines Corporation Manufactures Two Models of Fax Machines

Multiple Choice

National Business Machines Corporation manufactures two models of fax machines: A and B. Each model A costs $150 to make, and each model B costs $105. The profits are $45 for each model A and $30 for each model B fax machine. If the total number of fax machines demanded each month does not exceed 2,500 and the company has earmarked no more than $600,000/month for manufacturing costs, find how many units of each model National should make each month in order to maximize its monthly profits. What is the largest monthly profit the company can make?

A) 0 units of model A, 2,500 units of model B; $225,000
B) 2,500 units of model A, 0 units of model B; $112,500
C) 1,250 units of model A, 1,250 units of model B; $225,000
D) 0 units of model A, 2,500 units of model B; $75,000