A firm offers three different prices on Its products, depending upon the quantity purchased. Since available resources are limited, thefirm would like to prepare an optimal production plan to maximize profits. Product 1 has the following profitability: $18 each for the first90 units, $17 each for units 91-180, and $16 for each unit over 180. Product 2's profitability is $12 each for the first 65 units, $11 each forunits G6-130, and $10 each for each unit over 130. The products each require 3 raw materlals to produce (see table below for usagesand available quantities).Product 1 usage (poundsProduct 2 usage (poundsper unit)Available QuantityRaw Materialper unit)(pounds)2,5002,e002,3001110Use separable programming to find the optimal production plan.(Leave no cells blank - be certain to enter "0" wherever required. Round the first two answers (units of Product 1 and 2) to thenearest whole number. Round the total profit answer to 2 decimal places and use unrounded unit quantities to compute it.)units of Product t andunits of Product 2The total profit from this plan will be

Decision variables - x11= product 1 with a profit of $18 per unit x12= product 1 with a profit of…

Answered: A firm offers three different prices on…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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