A firm offers three different prices on its products, depending upon the quantity purchased. Since available resources are limited, the firm would like to prepare an optimal production plan to maximize profits. Product 1 has the following profitability: $18 each for the first 90 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 for units 66-130, and $10 each for each unit over 130. The products each require 3 raw materials to produce (see table below for usages and available quantities). Available Quantity (pounds) 2,500 2,000 2,300 Raw Material A B C Product 1 usage (pounds Product 2 usage (pounds per unit) per unit) 7 11 9 6 9 18
A firm offers three different prices on its products, depending upon the quantity purchased. Since available resources are limited, the firm would like to prepare an optimal production plan to maximize profits. Product 1 has the following profitability: $18 each for the first 90 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 for units 66-130, and $10 each for each unit over 130. The products each require 3 raw materials to produce (see table below for usages and available quantities). Available Quantity (pounds) 2,500 2,000 2,300 Raw Material A B C Product 1 usage (pounds Product 2 usage (pounds per unit) per unit) 7 11 9 6 9 18
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 33P: Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand...
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![A firm offers three different prices on its products, depending upon the quantity purchased. Since available
resources are limited, the firm would like to prepare an optimal production plan to maximize profits. Product 1 has
the following profitability: $18 each for the first 90 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 for units 66-130, and $10 each for each unit over
130. The products each require 3 raw materials to produce (see table below for usages and available quantities).
Available Quantity
(pounds)
2,500
2,000
2,300
Raw Material
A
B
C
Product 1 usage (pounds
per unit)
7
11
9
Product 2 usage (pounds
per unit)
6
9
10](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0caf952f-27ca-4195-b80d-c5ac5f9a28c4%2F230f50fe-fa06-4840-89a8-aea12edffced%2Fdoc3mou_processed.png&w=3840&q=75)
Transcribed Image Text:A firm offers three different prices on its products, depending upon the quantity purchased. Since available
resources are limited, the firm would like to prepare an optimal production plan to maximize profits. Product 1 has
the following profitability: $18 each for the first 90 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 for units 66-130, and $10 each for each unit over
130. The products each require 3 raw materials to produce (see table below for usages and available quantities).
Available Quantity
(pounds)
2,500
2,000
2,300
Raw Material
A
B
C
Product 1 usage (pounds
per unit)
7
11
9
Product 2 usage (pounds
per unit)
6
9
10
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