Question

A manufacturing company wants to maximize profits on products A, B, and C. The profit margin is $3 for A, $6 for B, and $15 for C. The production requirements and departmental capacities are as follows.
Production Requirement by Product
Department
(hours)
Departmental Capacity
(total hours)
A
B
Assembling
2
30,000
Painting
1
38,000
Finishing
2
28,000
What is the maximum profit in this model?
3
ONN
2
1
O A. $57,000
OB. $95.000
C. $225,000
D. $75,000

Answer 1

9514 1404 393

Answer:

  C.  $225,000

Step-by-step explanation:

The utilization for each department must be at most the available capacity. Each product quantity must be non-negative.

You could almost guess the answer here because the profit on product C is so much higher than for the others.

Profit is maximized by producing as much of product C as possible. That quantity is limited by the assembly hours constraint: 2C ≤ 30,000. This permits production of 15,000 units, so gives a profit of ...

  $15·15,000 = $225,000 . . . maximum profit