Question: I need some help with my assignment. The problem is attached as well as the template that needs to be followed. Any help is greatly

I need some help with my assignment. The problem is attached as well as the template that needs to be followed. Any help is greatly appreciated!

Assignment 4 GMCO produces three types of cars: compact, medium, and large. The variable cost per car and production capacity (per year) for each type of car are given in the file Assignment4 Template.xlsx. The annual demand for each type of car depends on the prices of the three types of cars, also given in this file. In this latter table, PC is the price charged for a compact car (in thousands of dollars). The variables PM and PL are defined similarly for medium and large cars. Suppose that each compact car gets 30 mpg, each medium car gets 25 mpg, and each large car gets 18 mpg. GMCO wants to keep the planet pollution free, so in addition to maximizing profit, it wants to maximize the average miles per gallon attained by the cars it sells. Construct a trade-off curve between these two objectives. GMCO production Variable costs and production capacities Cost Capacity Compact $10,000 2000 Medium $14,000 1500 Large $18,000 1000 Demand functions 2500-100PC+3PM Compact Medium Large 1800-30PM+2PC+PL 1300-20PL+PM
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
