A company produces two products: A and B. Product A sells for $11 per unit and product B sells for $23 per unit. Producing a unit of product A requires 2 hours on assembly line 1 and 1 unit of raw...


A company produces two products: A and B. Product A sells for $11 per unit and product B sells for $23 per unit. Producing a unit of product A requires 2 hours on assembly line 1 and 1 unit of raw material. Producing a unit of product B requires 2 units of raw material, 1 unit of A, and 2 hours on assembly line 2. On line 1, 1300 hours of time are available, and 500 hours are available on line 2. A unit of raw material can be bought (for $5 a unit) or produced (at no cost) by using 2 hours of time on line 1.


a. Determine how to maximize profit.


b. The company will stop buying raw material when the price of raw material exceeds what value? (Use SolverTable.)



May 22, 2022
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