Repco produces three drugs, A, B, and C, and can sell these drugs in unlimited quantities at unit prices $8, $70, and $100, respectively. Producing a unit of drug A requires 1 hour of labor. Producing a unit of drug B requires 2 hours of labor and 2 units of drug A. Producing 1 unit of drug C requires 3 hours of labor and 1 unit of drug B. Any drug A that is used to produce drug B cannot be sold separately, and any drug B that is used to produce drug C cannot be sold separately. A total of 4000 hours of labor are available. Repco wants to use LP to maximize its sales revenue.
Objective To develop an LP spreadsheet model that relates production decisions to amounts required for production and amounts available for selling, and to use Solver to maximize sales revenue, subject to limited labor hours.
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