b) The ABC electric company produces two products, refrigerators and cooking ranges. Production takes place in two separate departments. Refrigerators are produced in department I and cooking ranges are produced in department II. The company's two products are produced and sold on a weekly basis. The weekly production cannot exceed 25 refrigerators in department I and 35 ranges in department II. Because of limited available facilities in the two departments the company regularly employs a total of 60 workers in the two departments. A refrigerator requires two men-weeks of labor, while a cooking range requires 1 man-week of labor. A refrigerator contributes a profit of $60 and a cooking range contributes a profit of $40. How many units of refrigerators and cooking ranges should the company produce in order to gain the maximum profit? Show graphically.
b) The ABC electric company produces two products, refrigerators and cooking ranges. Production takes place in two separate departments. Refrigerators are produced in department I and cooking ranges are produced in department II. The company's two products are produced and sold on a weekly basis. The weekly production cannot exceed 25 refrigerators in department I and 35 ranges in department II. Because of limited available facilities in the two departments the company regularly employs a total of 60 workers in the two departments. A refrigerator requires two men-weeks of labor, while a cooking range requires 1 man-week of labor. A refrigerator contributes a profit of $60 and a cooking range contributes a profit of $40. How many units of refrigerators and cooking ranges should the company produce in order to gain the maximum profit? Show graphically.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:b) The ABC electric company produces two products, refrigerators and cooking ranges.
Production takes place in two separate departments. Refrigerators are produced in
department I and cooking ranges are produced in department II. The company's two
products are produced and sold on a weekly basis. The weekly production cannot
exceed 25 refrigerators in department I and 35 ranges in department II. Because of
limited available facilities in the two departments the company regularly employs a
total of 60 workers in the two departments. A refrigerator requires two men-weeks of
labor, while a cooking range requires 1 man-week of labor. A refrigerator contributes
a profit of $60 and a cooking range contributes a profit of $40. How many units of
refrigerators and cooking ranges should the company produce in order to gáin the
maximum profit? Show graphically.
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