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Posts: 2784
7 years ago
Santora Company manufactures two products - toaster ovens and bread machines. The following data are available:

   Toaster Ovens   Bread Machines
Sales price   $70   $170
Variable costs   $50   $70

Santora can manufacture six toaster ovens per machine hour and four bread machines per machine hour. Santora's production capacity is 2,000 machine hours per month, and it can sell as many units of either type as it can produce. 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.)
A) 6,000 toaster ovens and 4,000 bread machines
B) 8,000 bread machines
C) 8,000 toaster ovens and 6,000 bread machines
D) 12,000 toaster ovens
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
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