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

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A company sells two products with information as follows: AB Sales price per unit $11.00$20.00 Variable cost per unit $10.00$10.00\begin{array} { | l | r | r |} \hline & \mathrm { A } & \mathrm { B } \\\hline \text { Sales price per unit } & \$ 11.00 & \$ 20.00 \\\hline \text { Variable cost per unit } & \$ 10.00 & \$ 10.00 \\\hline\end{array} The products are machine made. Four units of product A can be made with one machine hour and two units of product B can be made with one machine hour. The company has a maximum of 3000 machine hours available per month. The company can sell up to 18,000 units of product A per month, and up to 3000 units of product B for the month. What is the optimum product mix to maximize the company's operating income?

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Definitions:

Creativity

The ability to produce original and valuable ideas or solutions to problems through imaginative thinking.

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A principle in economics and social science stating that parties engage in transactions when they perceive the benefits will outweigh the costs.

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Refers to a duty or commitment that an individual feels bound to perform, often driven by moral or legal reasons.

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The application of scientific method and reasoning, including observation, hypothesis formation, experimentation, and conclusion to solve problems.

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