Question: Interpreting a linear programming diagram Below is the graphic solution for a produc- tion problem involving products A and B which have contribution margins of

Interpreting a linear programming diagram Below is the graphic solution for a produc- tion problem involving products A and B which have contribution margins of $30 and $40 respectively. The products are produced in three departments: forming, assembly, and finishing. The diagram below indicates daily production and the constraints are in hours. Product A requires 1 hour of forming, 1 hour of assembly, and 2 hours of finishing.

Demand for the two products are changing and the company has to change its prices. Management estimates that the contribution margins will change to $36 for product A and $34 for product B. Product A 30 Forming 20 10/ a Assembly b C Finishing 10 Product B 20 20 30

Product A 30 Forming 20 10/ a Assembly b C Finishing 10 Product B 20 20 30

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