The WorldLight Company produces two light fixtures (products 1 and 2) that require both metal frame parts and electrical components. Management wants to determine how many units of each product to produce so as to maximize profit. For each unit of product 1, 1 unit of frame parts and 2 units of electrical components are required. For each unit of product 2, 3 units of frame parts and 2 units of electrical components are required. The company has 200 units of frame parts and 300 units of electrical components. Each unit of product 1 gives a profit of $1, and each unit of product 2, up to 60 units, gives a profit of $2. Any excess over 60 units of product 2 brings no profit, so such an excess has been ruled out. (a) Formulate a linear programming model for this problem. (b) Use the graphical method to solve this model. What is the resulting total profit?

The WorldLight Company produces two light fixtures (products 1 and 2) that require both metal frame parts and electrical components. Management wants to determine how many units of each product to produce so as to maximize profit. For each unit of product 1, 1 unit of frame parts and 2 units of electrical components are required. For each unit of product 2, 3 units of frame parts and 2 units of electrical components are required. The company has 200 units of frame parts and 300 units of electrical components. Each unit of product 1 gives a profit of $1, and each unit of product 2, up to 60 units, gives a profit of $2. Any excess over 60 units of product 2 brings no profit, so such an excess has been ruled out. (a) Formulate a linear programming model for this problem. (b) Use the graphical method to solve this model. What is the resulting total profit?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Which of the following statements about deposit/refund systems is INCORRECT Most deposit/refund systems in the United States are used for beverage containers and lead-acid batteries. Some nations use deposit/refund systems for automobile bodies The deposit is imposed at the time of purchase like a retail disposal charge To be a viable system, the refund must be exactly equal to the deposit. None of the above (because they’re all correct)
Marginal Profit Yaster Breakfast Supplies is planning to manufacture and market a new toaster. After conducting extensive market surveys, the research department provides the following estimates: • a weekly demand of 313 at a price of $13 per toaster • a weekly demand of 202 at a price of $17 per toaster The financial department estimates that weekly fixed costs will be $1,379 and variable costs (cost per unit) will be $4. Assume: • the relationship between price and demand is linear the cost function in linear Use your models to predict the marginal profit when Yaster is producing and selling 261 toasters per week. Round to the nearest cent. $ per toaster
Atty. Larry Gadon has barely passed the Bar Examination. This however did not deter him to venture into the private practice of law. To attract clients in his law office, he decided to purchase several law books so that he will have something to display in his library. He then purchased in an installment basis from Phoenix Publishing Company several law books including a complete set of Supreme Court Reports Annotated. As a result, Phoenix Publishing Company expressly reserve the ownership of the said books despite its actual delivery to Atty. Gadon. A day after the books were delivered, the building housing his office and library was gutted by fire, burning the books that were earlier delivered. On the due date, Phoenix Publishing Company demanded from Atty. Gadon the payment of his balance, however he refused to pay it since he then contended that he was not yet the owner of the books at the time it was delivered as the Publishing Company made reservation of ownership despite its…
D.1.
Tex-House builds and sells houses for $200,000 each. The firms fixed costs are $3,000,000. 50 houses are built and sold each year. Profits total about $2,000,000. The firm estimates that it can change its production process by adding 4,000,000 to investment and $1,000,000 to fixed costs. This would reduce variable costs by $30,000 and increase output by 30 units. To permit sales of the new output, prices would have to be lowered by $20,000 per unit. Should the firm make the change? At the new production level, what price would make profits equal zero? Will the new production situation expose the firm to more or less risk?
A lash adjuster keeps pressure constant on engine valves, thereby increasing fuel efficiency in automobile engines. The relationship between price (p) and monthly demand (D) for lash adjusters made by the Wicks Company is given by this equation D (1.900-py0 10 What is the demand (0) when total revenue is maximized? What important data are needed if maximum profit is desired? G The total revenue is maximized when demand is 9500 units per month (Round to the nearest whole number) Select all important data that are needed if maximum profit is desired. DA Variable cost per lash adjuster B. Fixed cost per month C. Variable cost per engine valve D. Variable cost per gallon of fuel
Global, Incorporated, has received an order for 1000 widgets, with a total order value of $100 million, to be delivered to a customer in country Beta. The order was generated by Global's subsidiary in country Beta, called Global-B. Global-A, which is Global's subsidiary in country Alpha, produces the widgets and ships them to Global-B. Assume that there are no transportation or other expenses associated with moving widgets from Global-A to Global-B. Global-A incurs direct costs of $50 million for producing 1000 widgets and there are no other variable costs associated with producing and delivering these 1000 widgets to Global-B. Global-B incurs $10 million in costs associated with marketing, sales, and support of this order, and has no other variable costs attributable to this order except the amount that they pay Global-A for the widgets. Country Alpha has a corporate income tax rate of 30 percent, and country Beta has a rate of 40 percent. If the internal transfer price charged by…
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
Question 34 A cell phone factory has a total production cost of Cx) - 150x+10000 and a revenue function R(x) - 200x, where x represents the number of cell phones made or sold. Determine the break-even point for this factory. Break-even point: (20,220) Break-even point: (200,40000) Break-even point: (40000,200) Break-even point: (220,20)