Question

BBB makes premium and standard bicycles. Each premium bike yields a profit of $18,and each standard bike yields a profit of $15. A premium bike requires 4 hours of processing at machine center A and 3 hours at machine center B. A standard bike requires 2 hours of processing at machine center A, and 3 hours at machine center B. Machine center A has a maximum of 140 hours of available capacity per day, machine canter B has 82 hours. The company only sells fully assembled bikes. a) If the company wishes to maximize profit, how many premium bikes and standard bikes should be produced per day? b) What is the $ amount of this profit? c) Is the solution feasible?

Answer 1

Answer:

Machine center A will produce 70 standard bike to maximize his profit

while Machine center B will produce 26 units of deluxe an 2 units of standard

Profit = 1,548

Explanation:

luxury bike contribution for constrain resource

18 / 4 =  4.50 dollar of profit per hour

18 / 3 =  6.00 dollar of profit per hour  

standard bike contribution for constrain resource

15 / 2 =  7.50 dollar of profit per hour

15 / 3 =  5.00 dollar of profit per hour

Machine center A will produce 70 standard bike to maximize his profit

while Machine center B will produce 26 units of deluxe an 2 units of standard

profit = 70 x 15 + 26 x 18 + 2 x 15 = 1050 + 498 = 1,548