# A company that manufactures three products a b and c requires two raw materials - labor and

## Question:

A company that manufactures three products a b and c requires two raw materials - labor and material - need to determine the optimal production that maximizes its total profit. A linear program was formulated to meet this need

where x1,x2,x3 are the total product A,B,C.

Base on the tableau answer the following questions:

a. find the gain range per unit for product A. Find the optimal solution for c1=2

b. Assume that 15 additional units of material can be obtained for $10. Is it a benefit to obtain these units?

c. Find the optimal solution when the material available goes up to 60 units.

d. Due to technological changes, the material requirements for product B have been reduced to 2 units. Would this affect the optimal solution? explain

**Related Book For**

## Managerial Accounting Tools for business decision making

ISBN: 978-1118096895

6th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso