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3 years ago

Santora Company manufactures two productslong dash—toaster ovens and bread machines. The following data are available:

Business

1 answer:

denpristay [2]3 years ago

3 0

Answer:

Thus to maximize profit, Santora Company should manufacture Bread machine only.

The unit of Bread machine can be produced in 2,000 machine hours is 8,000 units

Explanation:

The profit for Toaster Ovens and Bread Machines is $10 and $90 respectively; thus

six toaster ovens per machine hour will generate profit of $60 = ($10 *6)

four bread machines per machine hour will generate profit of $360 = ($90 *4)

In the same machine hour the profit from Bread machines are significantly higher then Toaster over. Thus to maximize profit, Santora Company should manufacture Bread machine only.

The unit of Bread machine can be produced in 2,000 machine hours is 8,000 units (= 2,000 * 4)

The profit for 8,000 units of Bread machine is $720,000 = (8,000 * $90)

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Santora Company manufactures two productslong dash—toaster ovens and bread machines. The following data are​ available:

Santora Company manufactures two productslong dash—toaster ovens and bread machines. The following data are available: