Boylan Company manufactures two products-toaster ovens and bread machines.The following data are available: $$\begin{array} { | l | r | r | }
\hline & \text { Toaster Ovens } & \text { Bread Machines } \
\hline \text { Sales price } & \$ 70 & \$ 170 \
\hline \text { Variable costs } & \$ 30 & \$ 70 \
\hline
\end{array}$$ 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 6100 toasters and 4000 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: $$\begin{array} { | l | r | r | } 
\hline & \text { Toaster Ovens } & \text { Bread Machines } \
\hline \text { Sales price } & \$ 70 & \$ 170 \
\hline \text { Variable costs } & \$ 30 & \$ 70 \
\hline
\end{array}$$ 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 6100 toasters and 4000 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 can produce 6 toaster ovens per machine hour and 4 bread machines per machine hour. So, to produce 6100 toaster ovens, it will take 6100/6 = 1016.67 machine hours. To produce 4000 bread machines, it will take 4000/4 = 1000 machine hours. The total machine hours required to produce 6100 toaster ovens and 4000 bread machines is 1016.67 + 1000 = 2016.67 machine hours. This is less than Boylan's production capacity of 1600 machine hours per month. Therefore, Boylan can produce 6100 toaster ovens and 4000 bread machines per month to maximize profits.

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