Question 1
A company makes (window) frames and doors. It makes a profit of $30 on frames and $35 on a door.
Each frame requires 5 units of materials, 3 units of machine time and 2 units of labour. Each door requires 8 units of material, 5 units of machine time and 1 unit of labour. The resources available are 400 units of materials, 500 units of machine time and 100 units of labour.
Formulate this as a linear programming problem listing the constraints and
objective function.
Graph the linear inequalities and shade the feasible region.
How many of each type should be produced to maximize the profit?
What is the maximum profit?
Question 2
Draw each inequality and shade the feasible region
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Question 3
Mac Electronic Company manufactures and sells headphone set. After suitable test marketing, the research department presents the following price-demand equation:
𝑝(𝑥) = 900 − 5𝑥, where x is the number of headphones and p is the unit price.
The financial department estimated $2000 for fixed costs. The variable cost is $300 per headphone set.
Find the revenue function and cost function.
Find the marginal revenue and its value when x = 20.
Find the profit function.
Determine the output level to maximize the profit and find the maximum profit.
Find the marginal profit function.
Question 4
A profit function is given by
Calculate the break-even points. Show a graphical representation for the
points.
What is your decision on the quantity to produce and sell to break even?
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