Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins of $400 and $800, respectively. Assume initially that Patz can sell all that is produced of either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 400 assembly hours per week. What if market conditions are such that Patz can sell at most 100 units of Part A and 80 units of Part B? Express the objective function with its associated constraints for this case. Objective function: Max Z = $400 A + $800 B Assembly-hour constraint fill in the blank 7 A + fill in the blank 8 B ≤ fill in the blank 9 Demand constraint for Part A A ≤ fill in the blank 10 Demand constraint for Part B B ≤ fill in the blank 11 Identify the optimal mix and its associated total contribution margin. Component A $fill in the blank 12 units Component B $fill in the blank 13 units Total contribution $fill in the blank 14
Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins of $400 and $800, respectively. Assume initially that Patz can sell all that is produced of either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 400 assembly hours per week.
What if market conditions are such that Patz can sell at most 100 units of Part A and 80 units of Part B? Express the objective function with its associated constraints for this case.
Objective function: Max Z = $400 A + $800 B
| Assembly-hour constraint | fill in the blank 7 A + fill in the blank 8 B ≤ fill in the blank 9 |
| Demand constraint for Part A | A ≤ fill in the blank 10 |
| Demand constraint for Part B | B ≤ fill in the blank 11 |
Identify the optimal mix and its associated total contribution margin.
Component A $fill in the blank 12 units
Component B $fill in the blank 13 units
Total contribution $fill in the blank 14
We need to construct the mathematical expression of the objective function that are associated with each constraint and calculate the total contribution margin.
Therefore,
Assembly hour constraint: 2A+5B=400
Demand constraint for part A: A
Demand constraint for part B: B80
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