A. C .Tech Manufacturing Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below.

The maximum machine-hours available are 6,200 per week.
How many of each product should be produced per month using the short-run profit maximizing strategy?

Question

A. C .Tech Manufacturing Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below.

The maximum machine-hours available are 6,200 per week.
How many of each product should be produced per month using the short-run profit maximizing strategy?

Quizplus · Accepted Answer

Small: (430 - 200) / 70 = 3.29
Medium: (550 - 320) / 40 = 5.75
Large: (1,230 - 700) / 170 = 3.12
Medium (130 × 40) + Small (14 × 70) = 6,180 total machine-hours

A CTech Manufacturing Appliances Manufactures Three Sizes of Kitchen Appliances: Small