Question

1).

Zapit, Inc. manufactures two products, Product A and Product B. Product A yields an incremental profit of $2 per unit, and Product B yields an incremental profit of $4. Product A requires four hours of processing at Machine A and two hours at Machine B. Product B requires six hours at Machine A, six hours at Machine B, and one hour at Machine C. Machine A has a maximum of 120 hours of available capacity per day, Machine B has 72 hours, and Machine C has 10 hours.

If the company produces 562 of Product A and 636 of Product B, calculate the expected profit?

Select one:

a. $3,668

b. $7,989

c. $3,520

d. not enough information is provided

Answer 1

Expected profit = [unit sales *Incremental profit ]Product A + [unit sales *Incremental profit ]Product B

                     =[562*2] + [636*4]

                    = 1124+ 2544

                    = $ 3668

CORRECT OPTION IS "a"-3668