Udhila Limited manufactures two products, Roc and Doc. The following data are presented: Sales price per...

Transcribed Image Text:

Udhila Limited manufactures two products, Roc and Doc. The following data are presented: Sales price per unit Variable cost per unit Joint fixed cost per day Roc Doc N$ N$ 20 30 8 20 N$60 Production of the two products are limited by quantity available for the essential input materials: Mat A, Mat B & Mat C. All other inputs are available without any restrictions. The quantities used are available against current prices, without any limitations. The quantities needed of Mat A, MaT B and Mat C to produce a single unit of Roc and Doc, including the quantities available each day, are as follow. Mat A Mat B Mat C Kg per unit required Total available Roc Doc (kg per day) 5 12.50 75 8 10 80 2 0 15 Natangwe, the sales director indicated that any combination of Roc and/or Doc can be sold without influencing the selling price in the market. He also indicated that the company should maximize its total profits from the sales. Marks Required Sub- Total total 2.1 Formulate the objective function as well as the restrictions of the two products, Roc and Doc. 5 5 2.2 Make use of a graph to obtain the combination of the two products Roc and Doc that have to be manufactured and sold to maximise the profit of Udhila Limited by computing the contribution at each of the extreme intersects within the feasible area. 10 10 15 2.3 Calculate the net profit at the optimum sales mix. Total 2 17 17 Udhila Limited manufactures two products, Roc and Doc. The following data are presented: Sales price per unit Variable cost per unit Joint fixed cost per day Roc Doc N$ N$ 20 30 8 20 N$60 Production of the two products are limited by quantity available for the essential input materials: Mat A, Mat B & Mat C. All other inputs are available without any restrictions. The quantities used are available against current prices, without any limitations. The quantities needed of Mat A, MaT B and Mat C to produce a single unit of Roc and Doc, including the quantities available each day, are as follow. Mat A Mat B Mat C Kg per unit required Total available Roc Doc (kg per day) 5 12.50 75 8 10 80 2 0 15 Natangwe, the sales director indicated that any combination of Roc and/or Doc can be sold without influencing the selling price in the market. He also indicated that the company should maximize its total profits from the sales. Marks Required Sub- Total total 2.1 Formulate the objective function as well as the restrictions of the two products, Roc and Doc. 5 5 2.2 Make use of a graph to obtain the combination of the two products Roc and Doc that have to be manufactured and sold to maximise the profit of Udhila Limited by computing the contribution at each of the extreme intersects within the feasible area. 10 10 15 2.3 Calculate the net profit at the optimum sales mix. Total 2 17 17

Answer rating: 100% (QA)

21 Formulating the Objective Function and Restrictions Objective Function Maximize Profit Selling Pr... View the full answer