Lie around furniture manufactures two products to maximize


Question - Lie Around Furniture manufactures two products: Futons and Recliners. The following data are available:

Futons Recliners

Sales price $ 530.00 $ 710.00

Variable costs $ 380.00 $ 405.00

The company can manufacture 3 futons per machine hour and 2 recliner per machine hour. The company's production capacity is 4,100 machine hours per month.

To maximize profits, what product and how many units should the company produce in a month?

A. 12,300 futons and 8,200 recliners

B. 12,300 futons

C. 8,200 futons and 6 recliners

D. 8,200 recliners

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Accounting Basics: Lie around furniture manufactures two products to maximize
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