A company makes two products (1 and 2). Each product requires time on two machines A and
Question:
A company makes two products (1 and 2). Each product requires time on two machines A and B. The specifications for each product are as follows;
Product 1 Product 2
Processing time on machine A (hrs/unit) 2 2
Processing time on machine B (hrs/unit) 1 2
Material and labor cost (Sh./unit) 14 15
Selling price (Sh./unit) 16 18
Maximum possible sale (units) 130 150
The amount of time available on machine A is 360 hrs and on the machine, B is 260 hrs. Formulate the LP problem, which when solved, would indicate the number of products 1 and 2, which should be sold in order to maximize the total contribution for the company.
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry