Question: (2 Problems) A firm offers two different prices on its products, depending upon the quantity purchased. Since available resources are limited, the firm would like

(2 Problems) A firm offers two different prices(2 Problems) A firm offers two different prices

(2 Problems) A firm offers two different prices on its products, depending upon the quantity purchased. Since available resources are limited, the firm would like to prepare an optimal production plan to maximize profits. Product 1 has the following profitability: $75 each for the first 25 units and $60 for each unit over 25. Product 2's profitability is $200 each for the first 50 units and $100 each for each unit over 50. The products each require two raw materials to produce (see table below for usages and available quantities). Raw Product 1 usage Product 2 usage Available Quantity Material (gallons per unit) (gallons per unit) (gallons) A 10 20 1.500 B 5 7 2,000 Question 16 (2.5 points) How many decision variables are needed in the formulation of this problem? [Excel Solver] Use separable programming to find the optimal production plan. 100 units Product 1, 50 units Product 2 25 units Product 1, 100 units Product 2 100 units Product 1, 100 units Product 2 50 units Product 1, 50 units Product 2 100 units Product 1, 25 units Product 2

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!