Question

uzz Appliances manufactures two products: Food Processors and Espresso Machines. The following data are available: ​ Food Processors Espresso Makers Sales price $155​ $245​ Variable costs $90​ $180​ The company can manufacture two food processors per machine hour and three espresso machines per machine hour. The company's production capacity is 1400 machine hours per month. The company has demand of 1500 espresso machines. How many espresso machines and food processors should they produce based on demand and available machine hours

Answer 1

Answer:

It will produce 1,500 espresso

and 1,800 food processors

Explanation:

$\left[\begin{array}{ccc}& processors& espresso\\ Sales&155&245\\ Variable&90&180\\ CM&65&65\\ Constrain resource usage&0.5&0.333\\ CM per constrain&130&195\ \end{array}\right]$

As the espresso provides more contribution per machine hours is better to first fullfil the demand for this product:

1,500 espresso / 3 per hous = 500 hours on espresso

1,400 - 500 = 900 hours to produce food processors

outcome: 900 x 2 = 1,800 units