Question

Beta Ltd makes two products, X and Y. Unfortunately, although the market demand for both products...

  1. Beta Ltd makes two products, X and Y. Unfortunately, although the market demand for both products is very high, the firm is unable to fully satisfy this demand for both products due to constraints in the availability of both machine capacity and skilled labor hours.

Product X requires 20 hours of machine time and 30 hours of skilled labor time. Product Y requires 10 hours of machine time and 20 hours of skilled labor time. The selling price is $200 for X and $260 for Y; while the variable cost per unit is $140 for X and $190 for Y. Machine capacity is only 1,150 hours per week and skilled labor time available is only 1,800 hours per week.

Required: Advice Beta Ltd on the profit-maximizing product mix. Round your answer to the lowest unit.

your info: The selling price is $200 for X and $260 for Y; while the variable cost per unit is $140 for X and $190 for Y

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