Question: V. Use the following information to answer multiple-choice Questions 41 to 50. A company uses a small production facility to produce two products on a

V. Use the following information to answerV. Use the following information to answer

V. Use the following information to answer multiple-choice Questions 41 to 50. A company uses a small production facility to produce two products on a weekly basis. Each product is manufactured by a two-step machining process that involves both machines (A) and (B). Because these facilities are shared, and costs and profits from each product are different, there is the question of how to utilise the available machine time in the most profitable way. The processing times for each unit of the two products on machines (A) and (B), together with the contribution to fixed costs and profit per unit of each product sold, are shown in Table QV below. Product Machine (A) Machine (B) (Hours/Unit) (Hours/Unit) 3 3 1 4 Table QV Contribution to Fixed Costs and Profit () 150 100 1 2 Machines (A) and (B) have 18 and 36 hours of processing time available per week, respectively. The Marketing Department has indicated that the company can expect to sell a maximum of 5 units of product 1 and 8 units of product 2 in each week. Use a graphical method to determine how many units of each product 1 and 2 the company should produce in order to maximise its total profit. In determining how many units of product 1 and 2 should be produced in order to maximise the total profit, let X=Number of units of product 1 and Y = Number of units of product 2. 49. In using the graphical method of L. P., the Feasible Region' is encompassed: a) Above the X-axis b) In the cross-sectioned area c) To the right of the Y-axis d) Above the X-axis and to the right of the Y-axis 50. The application of L. P. enables managers to: a) Maximise profit only b) Minimise costs only c) Solve a range of optimising problems subject to several constraints d) Optimise the availability of resources only

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