Cru Cabinets makes two styles of cabinets, standard and deluxe. Information on e

Question

Cru Cabinets makes two styles of cabinets, standard and deluxe. Information on each cabinet is as follows: Standard: selling price is $250 Variable costs is $150 Labor hours per cabinet is 2, Demand is 3000 cabinets per month. Deluxe: selling price is $400 Variable costs is $250, Labor hours per cabinet is 4 and Demand is 2500 cabinets per month.

Cru determines that there are 10000 maximum labor hours available in a given month. How many of each cabinet should Cru manufacture to maximize profits?

Explanation / Answer

Cru Cabinets makes two styles of cabinets, standard and deluxe. Information on e

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