Product mix that maximizes weekly profit

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Reference no: EM13962767

Furniture Unlimited has the capability to manufacture desks, cabinets, and chairs. In order to manufacture these products, it must rent the appropriate equipment at a weekly cost of $2,000 for the desks, $2,500 for the cabinets, and $1,500 for the chairs. The labor and material requirements for each product are shown in the following table, along with the selling price and variable cost to manufacture.

 

Labor hours

Lumber (Sq. ft)

Sales Price

Variable Cost

Desk

3          

10

$110

$82

Cabinets

4

12

$135

$97

Chairs

2

5

$50

$32

There are 2500 labor hours and 4,000 square feet of lumber available each week.

Determine the product mix that maximizes weekly profit.

Reference no: EM13962767

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