b. Graph the constraints and identify the feasible region. c. Complete the table Corner Points THEY CY d. How many tons of each product should be produced, and what is the projected total profit contribution? TH Objective Function O FU

Cornerstones of Cost Management (Cornerstones Series)
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Chapter4: Activity-based Costing
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b. Graph the constraints and identify the feasible region.
c. Complete the table
Corner Points
d. How many tons of each product should be produced, and what is the
projected total profit contribution?!
Transcribed Image Text:b. Graph the constraints and identify the feasible region. c. Complete the table Corner Points d. How many tons of each product should be produced, and what is the projected total profit contribution?!
Solve the following problems. Show your complete solution.
i..
XYZ, Inc., is a small firm that produces a variety of chemical products. In a
particular production process, three raw materials are blended (mixed together) to produce
two products: a fuel additive and a solvent base. Each ton of fuel additive is a mixture of
ton of material 1 and % of material 3. A ton of solvent base is a mixture of ½ ton of material
1, ½ ton of material 2, and 10 ton of material 3. After deducting relevant costs, the profit
contribution is P2000 for every ton of fuel additive produced and P1500 for every ton of
solvent base produced.
XYZ's production is constrained by a limited availability of the three raw materials. For
the current production period, XYZ has the following available quantities of each raw
material:
Raw Material
Material 1
Amount Available for Production
20 tons
5 tons
21 tons
Material 2
Material 3
Assuming that XYZ is interested in maximizing the total profit contribution, answer the
following:
a. Define the variables used and formulate the linear programming model for this
problem.
Transcribed Image Text:Solve the following problems. Show your complete solution. i.. XYZ, Inc., is a small firm that produces a variety of chemical products. In a particular production process, three raw materials are blended (mixed together) to produce two products: a fuel additive and a solvent base. Each ton of fuel additive is a mixture of ton of material 1 and % of material 3. A ton of solvent base is a mixture of ½ ton of material 1, ½ ton of material 2, and 10 ton of material 3. After deducting relevant costs, the profit contribution is P2000 for every ton of fuel additive produced and P1500 for every ton of solvent base produced. XYZ's production is constrained by a limited availability of the three raw materials. For the current production period, XYZ has the following available quantities of each raw material: Raw Material Material 1 Amount Available for Production 20 tons 5 tons 21 tons Material 2 Material 3 Assuming that XYZ is interested in maximizing the total profit contribution, answer the following: a. Define the variables used and formulate the linear programming model for this problem.
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