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

question 150

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A company sells two products with information as follows:  A  B  Price per unit $12$20 Variable cost per unit $10$12\begin{array}{|l|r|r|} \hline&{\text { A }} &{\text { B }} \\\hline \text { Price per unit } & \$ 12 & \$ 20 \\\hline \text { Variable cost per unit } & \$ 10 & \$ 12 \\\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 3,000 machine hours available per month.
-The company can sell up to 7,000 units of Product A per month, and up to 3,000 units of Product B for the month. What is the optimum product mix to maximize company's operating income?


Definitions:

Direct Control

Supervising employees in explicit ways and monitoring their behavior to make sure they are performing adequately.

Alcoholic

A person who suffers from alcoholism, which is a chronic disease characterized by an uncontrollable desire to consume alcohol despite its negative effects.

Airline Attendant

A professional responsible for ensuring the safety and comfort of passengers onboard an aircraft, typically addressing in-flight service, security, and emergency procedures.

Technological Control

The use of various forms of organizational technology to control worker productivity.

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