Bexter Labs produces three products: A, B, and C.Bexter can sell up to 2000 units of product A, up to2500 units of product B, and up to 800 units of product C. Each unit of product C uses two units of A andthree units of B and incurs $5 in processing costs.Products A and B are produced from either raw material 1 or raw material 2. It costs $6 to purchase andprocess one unit of raw material 1. Each processedunit of raw material 1 yields two units of A and three units of B. It costs $3 to purchase and process a unitof raw material 2. Each processed unit of raw material 2 yields one unit of A and two units of B. Theunit prices for the products are: A, $5; B, $4; and C,$25. The quality levels of each product are: A, 8; B,7; and C, 6. The average quality level of the unitssold must be at least 7. Determine how to maximizeBexter’s profit.
Bexter Labs produces three products: A, B, and C.
Bexter can sell up to 2000 units of product A, up to
2500 units of product B, and up to 800 units of product C. Each unit of product C uses two units of A and
three units of B and incurs $5 in processing costs.
Products A and B are produced from either raw material 1 or raw material 2. It costs $6 to purchase and
process one unit of raw material 1. Each processed
unit of raw material 1 yields two units of A and three
units of B. It costs $3 to purchase and process a unit
of raw material 2. Each processed unit of raw material 2 yields one unit of A and two units of B. The
unit prices for the products are: A, $5; B, $4; and C,
$25. The quality levels of each product are: A, 8; B,
7; and C, 6. The average quality level of the units
sold must be at least 7. Determine how to maximize
Bexter’s profit.
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