Consider a company that produces two types of products  P1 and P2 . Production of these products is supported by two workstations  W1 and W2 , with each station visited by both product types. If workstation  W1 is dedicated completely to the production of product type P1, it can process 40 units per day, while if it is dedicated to the production of product P2, it can process 60 units per day. Similarly, workstation  W2 can produce daily 50 units of product  P1 and 50  units of product P2 , assuming that it is dedicated completely to the production of the corresponding product. 

If the company's profit by disposing of one unit of product P1 is $200 and that of disposing of one unit of  P2 is $400, and assuming that the company can dispose of its entire production, how many units of each product should the company produce on a daily basis to maximize its profit?

Answer rating: 100% (QA)

To maximize profit we need to determine the optimal number of units for each product to produce Lets assume the company produces x units of product P1 ... View the full answer