Family Furniture manufactures two products: Chairs and Sofas. The following data are available: Chairs Sofas Sales price $540 $730 Variable costs $360 $375 The company can manufacture 3 chairs per machine hour or 2 sofa(s) per machine hour. The company's production capacity is 900 machine hours per month. To maximize profits, what product and how many units should the company produce in a month?

Family Furniture manufactures two products: Chairs and Sofas. The following data are available: Chairs Sofas Sales price $540 $730 Variable costs $360 $375 The company can manufacture 3 chairs per machine hour or 2 sofa(s) per machine hour. The company's production capacity is 900 machine hours per month. To maximize profits, what product and how many units should the company produce in a month?

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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