Buzz Appliances manufactures two products: Food Processors and Espresso Machines. The following data are available:...
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Accounting
Buzz Appliances manufactures two products: Food Processors and Espresso Machines. The following data are available:
Food Processors
Espresso Makers
Sales price
$175
$235
Variable costs
$100
$170
The company can manufacture either two food processors per machine hour or three espresso machines per machine hour. The company's production capacity is 1,300 machine hours per month.
To maximize profits, what product and how many units should the company produce in a month (assuming unlimited demand for both products)
A. 150 Food Processors and 195 Espresso Machines
B. 2,600 Food Processors and 0 Espresso Machines
C. 2,600 Food Processors and 3,900 Espresso Machines
D. 3,900 Espresso Machines and 0 Food Processors
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