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A Company Sells Two Products with Information as Follows Products Are Made by Machine

question 133

Multiple Choice

A company sells two products with information as follows:
 A  B  Price per unit $10.00$16.00 Variable cost per unit $8.00$11.00\begin{array} { | l | r | r | } \hline & { \text { A } } & { \text { B } } \\\hline \text { Price per unit } & \$ 10.00 & \$ 16.00 \\\hline \text { Variable cost per unit } & \$ 8.00 & \$ 11.00 \\\hline\end{array}
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 2,000 machine hours available per month.
-The company can sell up to 5,000 units of Product A per month, and up to 2,000 units of Product B for the month. What is the optimum product mix given the stated constraints?


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