Question

EM Company produces two types of laptop computer bags. The regular version requires $32 in capital and 4 hours of labor and sells for $46. The deluxe version requires $38 in capital and 6 hours of labor and sells for $55. How many of each type of bag should the company produce in order to maximize their revenue if they have $2,100 in capital and 280 labor-hours available?
The company should make ___ regular laptop bags and ___ deluxe bags to maximize revenue.

Answer 1

Answer:

Step-by-step explanation:

Given that EM company produces two types of laptop computer bags.

Let regular version produced be R and deluxe version be D

Total capital required

= $32R+38D\leq 2100$

Total labor hours required

=$4R+6D\leq 280$

Sales revenue = $46R+55D$

Solving the two constraints we have

10D $\leq$ 140

D can be atmost 14 and hence R can be 49

Otherwise if D is made 0, R = 65 maximum

If R is made 0, D maximum is 46

Thus corner points are (65,0) (0.,46) or (49,14)

Sales revenue for (65,0) = 2990

(0,46) is 2530

(49,14) is 3024

Maximum when R =14 and D is 49