A manufacturer can sell product 1 at a profit of $2 per unit and product 2 at a profit of $5 per unit. Three units of raw material are needed to manufacture 1 unit of product 1, and 6 units of raw...

A manufacturer can sell product 1 at a profit of $2 per unit and product 2 at a profit of $5 per unit. Three units of raw material are needed to manufacture 1 unit of product 1, and 6 units of raw material are needed to manufacture 1 unit of product 2. A total of 120 units of raw material are available. If any product 1 is produced, a setup cost of $10 is incurred; if any product 2 is produced, a setup cost of $20 is incurred.


a.   Determine how to maximize the manufacturer’s profit.

b.  Use SolverTable to analyze how a change in the setup cost for product 1 affects the optimal solution. Do the same for the setup cost for product 2.