Question: Hi I need help with the below question. Thanks! Minimum costs application (taken from Arya, Lardner and Ibarra, p.399 and 439) A company that is
Hi I need help with the below question. Thanks!
Minimum costs application (taken from Arya, Lardner and Ibarra, p.399 and 439)
A company that is engaged in the production of furniture and plans to produce chairs and tables. This with the available resources, which consist of 800 feet of mahogany lumber and 900 hours of labor (HM). The manager knows that it takes 5 feet of lumber and 10 hours of labor to make a chair, earning a profit of $45. While each table uses 20 feet of lumber and 15 hours of labor to make, with a profit of 480. The marketing department reports that they can sell as many tables and chairs as possible that they can produce.
Based on the information above, answer the following questions:
A. What is the production plan that maximizes profit? (Use graphical method) B. What is the maximum profit? C. If the sale of each chair yields a profit of $45 and each table yields a profit of $120. What is the optimal production plan?
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