Question: A computer manufacturer makes two computers, Model A and Model B. Model A has a profit of $50 per unit and Model B has a

A computer manufacturer makes two computers, Model A and Model B. Model A has a profit of $50 per unit and Model B has a margin of $65. Model A has a cost of $750 and Model B $700. The company only has $100,000 in parts and supplies inventory to make computers.

Which of the following is true?

The company should make more Model Bs than Model As

The number of parts is the decision variable

The number computers made is based on the marginal profits

The number of Model A and Model B computer made are the decision variables

The price of Model A is $815 and the price of Model B is $750

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