Buzz appliances manufactures two products: food processors and espresso machines. the following data are available:
food processors espresso makers
sales price $125 $ 225
variable costs $ 80 $ 190
the company can manufacture either two food processors per machine hour or three espresso machines per machine hour. the company's production capacity is 1,600 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. 3,200 food processors and 4,800 espresso machines
b. 3,200 food processors and 0 espresso machines
c. 90 food processors and 105 espresso machines
d. 4,800 espresso machines and 0 food processors

Answer

D. 4,800 Espresso Machines and 0 Food Processors

The answer and procedures of the exercise are attached in a microsoft excel document.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

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