David is determined to make $50,000 after tax. After listening to your advice, he makes a radical choice: discontinuing the production of Bock and Stout beers
. Assume that David has conducted some market research that shows he will continue selling Ale and Pilsner beer at a ratio of 2 to 1.
Given David’s current productive capacity, can he now achieve his goal?
How many cases of Ale and Pilsner would he have to sell to reach his goal?
Given the 2:1 sales mix and the available number of machine hours, what is the maximum after-tax profit David could attain using this strategy?