# Buji manufactures cars and trucks. Each car contributes $300 to profit and each truck contributes $400. The

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## Question:

Buji manufactures cars and trucks. Each car contributes $300 to profit and each truck contributes $400. The resources required in manufacturing cars and trucks are shown on the table below. Each day, Buji can rent up to 98 Type 1 machines at $50 per machine. At present, the company has 73 Type 2 machines and 260 tons of steel available. Marketing considerations dictate that at least 44 cars must be produced. How many Type 1 machines should be rented daily and how many cars and trucks should be produced to maximize the company’s profit?

Days on Type 1 | Days on Type 2 | Steel (tons) | |

Car | 0.8 | 0.6 | 2 |

Truck | 1 | 0.7 | 3 |

1. Formulate the problem into an LP in symmetric form.

2. Solve the LP and give the optimal tableau.

**Related Book For**

## Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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