Montgomery Apparel Company (MAC) produces two kinds of products - shirts and pants. Production is subject...
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Montgomery Apparel Company (MAC) produces two kinds of products - shirts and pants. Production is subject to constraints related to cloth availability, cutting time and sewing time. The sales of the product are dependent on its price. MAC estimates the relationship between demand and the price of the products to be: Shirts: d1 = 1500-24.6*p1 d2 = 2700-63.8*p2 Pants: where (d1, p1) and (d2,p2) represent the demand and price of shirts and pants respectively. Resource constraints are given below: Data Resource Cloth Cutting Time Sewing Time Per unit requirement shirt 3.6 7.2 pants 2.7 2.9 8.5 Total Available 6000 8500 15000 The costs of production for a shirt and a pair of pants are $12 and $9 respectively. What is the optimal set of prices for the products that will maximize overall profitability? [Quantities produced can be fractional, so no integer variables need to be modeled] Montgomery Apparel Company (MAC) produces two kinds of products - shirts and pants. Production is subject to constraints related to cloth availability, cutting time and sewing time. The sales of the product are dependent on its price. MAC estimates the relationship between demand and the price of the products to be: Shirts: d1 = 1500-24.6*p1 d2 = 2700-63.8*p2 Pants: where (d1, p1) and (d2,p2) represent the demand and price of shirts and pants respectively. Resource constraints are given below: Data Resource Cloth Cutting Time Sewing Time Per unit requirement shirt 3.6 7.2 pants 2.7 2.9 8.5 Total Available 6000 8500 15000 The costs of production for a shirt and a pair of pants are $12 and $9 respectively. What is the optimal set of prices for the products that will maximize overall profitability? [Quantities produced can be fractional, so no integer variables need to be modeled]
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Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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