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A Product May Be Made Using Machine I or Machine

Question 131

Multiple Choice

A product may be made using machine I or machine II. The manufacturer estimates that the monthly fixed costs of using machine I are $18,000, whereas the monthly fixed costs of using machine II are $15,000. The variable costs of manufacturing 1 unit of the product using machine I and machine II are $10 and $20, respectively. The products sell for $50 each. What is the maximum profit if the projected sales are 650 units?


A) $8,150
B) $8,000
C) $8,100
D) $8,200
E) $8,050

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