In order to maximize profit, 4800 Expresso machines and 0 food processors should be produced.
<h3>How to maximize profit</h3>
From the information given, the contribution margin per hour for Expresso makers will be:
Sales price = $225
Less: Variable cost = $190
Contribution margin = $35
Units per hour = $3
Contribution margin per machine hour = $35 × 3 = $105
Also, the Contribution margin per machine hour for food processor is $90.
Number of units available = 1600
Units per machine hour = 3.
Units to manufacture = 1600 × 3 = 4800
Therefore, to maximize profit, 4800 Expresso machines and 0 food processors should be produced.
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