Question: Q#1: Nancy and Bob run a small machine shop operation in which they manufacture two products, using two machines. Each product must be processed first

Q#1: Nancy and Bob run a small machine shop operation in which they manufacture two products, using two machines. Each product must be processed first through machine A and then machine B. Product #1 requires 2 hours/unit on machine A and 1.5 hours/unit on machine B. Product #2 requires 1 hour/unit on machine A and 1.8 hours/unit on machine B. Per unit profit on Product #1 and Product #2 is $25 and $40 respectively. The capacity of machine A is 30 hours/week, and machine B is available for 45 hours/week. Because of a raw material shortage this week, production of Product #2 cannot exceed 21 units. Find the optimum product quantity for each to maximize profit. Use graphical solution. 8 points
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
