Constrained Optimization: One Internal Binding Constraint

Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins of $200 and $400, respectively. Assume initially that Patz can sell all that is produced of either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 200 assembly hours per week.

Required:

1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint.

Objective function: Max Z = $200 A + $400 B

Subject to: _________ A ______+ B _______

2. Identify the optimal amount that should be produced of each machine part. If none of the components should be produced, enter "0" for your answer.

Component A		________units
Component B		________units

Identify the total contribution margin associated with this mix. $ ___________