Question: L 0 2 1 - 1 , L 0 2 1 - 2 , L 0 2 1 - 3 , L 0 2 1
EXERCISE
Scarce Resources
Texteriles Company creates different types of bolts of cloth. These bolts of cloth are made on the
same machinery. The textile machines have the capacity of hours per month. Texteriles is
considering producing three different types of cloth: denim, chenille, and gauze, with contribution
margins per bolt of $$ and $ respectively. Texteriles knows it can sell only a total of
bolts of denim, bolts of chenille, andor bolts of gauze. A bolt of each type of cloth
requires a different amount of machine time as follows: denim takes machinehours, chenille
takes machinehour, and gauze takes machinehours. What combination of products will
maximize the profits of Texteriles?
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