A firm makes tow products X and Y and has a total production capacity of 9 tonnes per day, X and Y requiring the same production capacity. The firm has a permanent contract to supply as least 2 tonnes of x and at least 3 tonnes of Y per day to another company. Each tonne of X requires 20 machine-hours production time and each tonne of Y requires 50 machine-hours production time. The daily maximum possible number of machine- hours is 360. All the firm's output can be sold, and the profit made is Rs. 80 per tonne of X and Rs. 120 per tonne of Y. It is required to determine the production schedule for maximum profit and to calculate this profit. Use graphical method to get your solution.

A firm makes tow products X and Y and has a total production capacity of 9 tonnes per day, X and Y requiring the same production capacity. The firm has a permanent contract to supply as least 2 tonnes of x and at least 3 tonnes of Y per day to another company. Each tonne of X requires 20 machine-hours production time and each tonne of Y requires 50 machine-hours production time. The daily maximum possible number of machine- hours is 360. All the firm's output can be sold, and the profit made is Rs. 80 per tonne of X and Rs. 120 per tonne of Y. It is required to determine the production schedule for maximum profit and to calculate this profit. Use graphical method to get your solution.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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