What are some business plan questions
1 answer:
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Answer:
Some answers are attached below
Explanation:
We need to maximize profit -
Selling prices for A,B,C are given; Costs of materials 1,2 and labor are given.
Also given is that 1 unit of each product A,B,C requires certain units of material 1, material 2 and labor based on the table provided.
Profit for 1 unit of A = Selling Price - Cost = 101 - [(7*3)+(5*2)+(15*4)] = 10 $
Profit for 1 unit of B = Selling Price - Cost = 67 - [(7*1)+(5*4)+(15*2)] = 10 $
Profit for 1 unit of C = Selling Price - Cost = 97.5 - [(7*5)+(5*0)+(15*3.5)] = 10 $
LP Formulation
Maximize profit Z = 10A+10B+10C
subject to Constraints
3A+B+5C<=300 ----> Material 1 constraint
2A+4B<=400 ---->Material 2 constraint
4A+2B+3.5C <=200 ----->Labor
C>=10 -----> Product C Demand constraint
A,B,C>=0
Below is the solver solution and formulation table from Excel -
Maximum profit = 925 $
