Chemco produces three products: 1, 2, and 3. Eachpound of raw material costs $25. It undergoes processingand yields 3 oz of product 1 and 1 oz of product 2. It costs$1 and takes 2 hours of labor to process each pound of rawmaterial. Each ounce of product 1 can be used in one ofthree ways.It can be sold for $10/oz.It can be processed into 1 oz of product 2. This requires 2 hours of labor and costs $1.It can be processed into 1 oz of product 3. This requires 3 hours of labor and costs $2.Each ounce of product 2 can be used in one of two ways.It can be sold for $20/oz.It can be processed into 1 oz of product 3. This requires 1 hour of labor and costs $6.Product 3 is sold for $30/oz. The maximum number ofounces of each product that can be sold is given in Table 23.A maximum of 25,000 hours of labor are available.Determine how Chemco can maximize profit. TAB LE 23Product Oz1 5,0002 5,0003 3,000
Chemco produces three products: 1, 2, and 3. Each
pound of raw material costs $25. It undergoes processing
and yields 3 oz of product 1 and 1 oz of product 2. It costs
$1 and takes 2 hours of labor to process each pound of raw
material. Each ounce of product 1 can be used in one of
three ways.
It can be sold for $10/oz.
It can be processed into 1 oz of product 2. This requires 2 hours of labor and costs $1.
It can be processed into 1 oz of product 3. This requires 3 hours of labor and costs $2.
Each ounce of product 2 can be used in one of two ways.
It can be sold for $20/oz.
It can be processed into 1 oz of product 3. This requires 1 hour of labor and costs $6.
Product 3 is sold for $30/oz. The maximum number of
ounces of each product that can be sold is given in Table 23.
A maximum of 25,000 hours of labor are available.
Determine how Chemco can maximize profit.
TAB LE 23
Product Oz
1 5,000
2 5,000
3 3,000
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