In order to maximize profit, how much of product Y should the organization produce each month?

An organization produces two products, X and Y. The materials used for the production of both products are limited to 500 kilograms (kg) per month.

All other resources are unlimited and their costs are fixed. Individual product details are as follows:

Product X

Product Y

Selling price per unit

$10

$13

Materials per unit (at $1/kg)

2 kg

6 kg

Monthly demand

100 units

120 units

In order to maximize profit, how much of product Y should the organization produce each month?
A . 50 units.
B . 60 units.
C . 100 units.
D . 120 units.

View Answer

Answer: A