Boylan Company manufactures two products-toaster ovens and bread machines.The following data are available: $$\begin{array} { | l | r | r | }
\hline & \text { Toaster Ovens } & \text { Bread Machines } \
\hline \text { Sales price } & \$ 60 & \$ 170 \
\hline \text { Variable costs } & \$ 50 & \$ 60 \
\hline
\end{array}$$ Boylan can manufacture six toaster ovens per machine hour and four bread machines per machine hour.Boylan's production capacity is 1600 machine hours per month.Marketing limitations indicate that Boylan can sell a maximum of 6000 toasters and 4100 bread machines per month.Which product and how many units should the company produce in a month to maximize profits? (Round machine hour per unit to two decimal places and your final answer to the nearest whole dollar.)

Question

Boylan Company manufactures two products-toaster ovens and bread machines.The following data are available: $$\begin{array} { | l | r | r | } 
\hline & \text { Toaster Ovens } & \text { Bread Machines } \
\hline \text { Sales price } & \$ 60 & \$ 170 \
\hline \text { Variable costs } & \$ 50 & \$ 60 \
\hline
\end{array}$$ Boylan can manufacture six toaster ovens per machine hour and four bread machines per machine hour.Boylan's production capacity is 1600 machine hours per month.Marketing limitations indicate that Boylan can sell a maximum of 6000 toasters and 4100 bread machines per month.Which product and how many units should the company produce in a month to maximize profits? (Round machine hour per unit to two decimal places and your final answer to the nearest whole dollar.)

Quizplus · Accepted Answer

Boylan should produce 3450 toaster ovens and 4100 bread machines to maximize profits. This combination of products will utilize all of Boylan's production capacity and meet the marketing limitations.

Boylan Company Manufactures Two Products-Toaster Ovens and Bread Machines Boylan Can Manufacture Six Toaster Ovens Per Machine Hour and Data