Question: Serra Industries is a fine food company producing burgers and sausages. It has 300 staff who work 8 hours a day, 5 days a week

Serra Industries is a fine food company producing burgers and sausages. It has 300 staff who work 8 hours a day, 5 days a week for 50 weeks. The demand for burgers and sausages does not exceed 50,000 and 150,000 kilos annually. Fixed factory overheads are applied on the basis of direct labor hours @$1 per hour.

	burgers	sausages
	$	$
Sales	10	15
Variable costs	5	6
Contribution margin	5	9
Fixed costs	2	4
Profit	3	5

What are the maximum profit and the most profitable mix of products?

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