A company makes products A and B from 2 resources, labor and material. The company wants to determine the selling price which will maximize profits. A unit of A costs 30 to make and demand is estimated to be 50 - .09 * Price of A. A unit of B costs 20 to make and demand is estimated to be 30 - .14 * Price of B. The utilization of labor and materials and the available quantity of resources is shown in the table. A reasonable price for the products is between 90 and 140.

Product	A	B	Available resources
Labor (hr/unit)	2	4	150
Material (ounces/unit)	2	8	220
Manufacturing cost($/unit)	30	20
Demand (units)	50 - 0.09*P 1	30 - 0.14*P 2

Let X ₁ = demand for As and X ₂ = demand for Bs.
Let P ₁ = price for As and P ₂ = price for Bs.

Formulate the NLP for this company

Answer rating: 100% (QA)

Product A B Available resources Labor hrunit 2 4 150 Material ouncesunit 2 8 220 Manuf... View the full answer