Required:

(a) Formulate the objective function to maximize the contribution margin.

(b) Formulate the constraints based on the limited machine hours available

(c) Graph the constraints and determine how many units of each type of robot toy should be produced at the optimal point

Chelonia Ltd manufactures two small robot toys - RV1 and RV2. Both toys go through the Assembly Department and Packaging Department. The available machine hours for both Assembly and Packaging departments are limited. The Assembly Department has 150 machine hours per day and the Packaging Department has 50 machine hours per day. Additional capacity cannot be obtained in the short run. The company can sell as many toys as it produces The following data is provided RV1 RV2 Selling price Direct labour Variable manufacturing overhead Hours required per tov in Assembly Department Hours required per tov in Packaging Department er unit $200 $ 50 $120 5 hours10 hours 2 hours 2 hours er unit $350 $ 75 $175