R7.3. A farm sells its own produce in its large retail and wholesale outlets. It can produce potatoes (X) or barley (Y) with its resources. The farm makes a net profit of £70 per acre of potatoes (X) and £100 per acre of barley (Y). The farm manager draws up the following summary state- ment of his resources and input requirements. Requirements per acre Resources Labour Equipment Land X (potatoes) 12 staff days 3 machine days 1 acre Y (barley) 3 staff days 5 machine days 1 acre Amount available 1,080 staff days 450 machine days 100 acres Find the number of acres the farmer should devote to each product in order to maximise total net profit. What is the net profit in this situation?
R7.3. A farm sells its own produce in its large retail and wholesale outlets. It can produce potatoes (X) or barley (Y) with its resources. The farm makes a net profit of £70 per acre of potatoes (X) and £100 per acre of barley (Y). The farm manager draws up the following summary state- ment of his resources and input requirements. Requirements per acre Resources Labour Equipment Land X (potatoes) 12 staff days 3 machine days 1 acre Y (barley) 3 staff days 5 machine days 1 acre Amount available 1,080 staff days 450 machine days 100 acres Find the number of acres the farmer should devote to each product in order to maximise total net profit. What is the net profit in this situation?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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Transcribed Image Text:R7.3. A farm sells its own produce in its large retail and wholesale outlets. It can produce potatoes
(X) or barley (Y) with its resources. The farm makes a net profit of £70 per acre of potatoes (X)
and £100 per acre of barley (Y). The farm manager draws up the following summary state-
ment of his resources and input requirements.
Requirements per acre
Resources
Labour
Equipment
Land
X (potatoes)
12 staff days
3 machine days
1 acre
Y (barley)
3 staff days
5 machine days
1
acre
Amount available
1,080 staff days
450 machine days
100 acres
Find the number of acres the farmer should devote to each product in order to maximise
total net profit. What is the net profit in this situation?
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