Tarver Corporation makes stools and tables. The company can sell as many stools and tables as it can produce, but its machine-hour capacity is limited. Revenue and cost data for each unit are given as follows: It takes two machine hours to make a table and one machine hour per stool. Given this information, Tarver should:

Question

Tarver Corporation makes stools and tables. The company can sell as many stools and tables as it can produce, but its machine-hour capacity is limited. Revenue and cost data for each unit are given as follows:  It takes two machine hours to make a table and one machine hour per stool. Given this information, Tarver should:

Quizplus · Accepted Answer

Since it takes only one machine hour to make a stool and two machine hours to make a table, Tarver should produce stools rather than tables to maximize its production and profit while utilizing its machine-hour capacity efficiently.

Tarver Corporation Makes Stools and Tables