For every question, circle ALL that are trle, anld Cao Open book, notes, laptop.
ID: 1151837 • Letter: F
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For every question, circle ALL that are trle, anld Cao Open book, notes, laptop. Please, no cell phones or communication (FB, IM, etc.,) 1. You manufacture two products, A and B, each of which you sell for S1 profit. Product A requires 5 blobs and 3 globs, and product B requires 3 blobs and 5 globs. Your supplier has 120 blobs and 120 globs available. a. To maximize profit, produce 15 each of A and B. b. If the profit for B increases to $1.50, produce 5 As and 20 Bs. c. If the profit for B increases to $2, produce 24 Bs and no As. d. If you can make product B with 3 blobs and 3 globs at the original profit of S1 each, produce 40 Bs and no As. e. You can obtain more blobs and globs for product B by producing negative quantities of product A. 2. Starting with the same scenario, where A and B each make $1 profit: a. You should pay up to S.75 for 3 more blobs and 3 more globs. b. You should pay up to $6 for 24 more blobs and 24 more globs. c. If the profit on B increases to $2, you should pay up to $32 for 40 more blobs. d. If the profit on B increases to $2, you should pay up to $32 for 80 more globs. e. If the profit on B increases to $2, you can maximize profit by trading 30 blobs for 30 globs. 3. Starting with the same scenario, where A and B each make $1 profit: a. As the profit on B changes from $1 to $1.66, your business decision concerning product mix stays the same. b. As the profit on B changes from $1.66 to $1.99, your business decision concerning product mix changes. c. The business decision concerning product mix requires precise data on blobs and globs available, blobs and globs per product, and exact profit amounts per product d. If you have a probability distribution of future profit amounts for each product, you can simulate this process to get a distribution of profits from different product mixes. e. If the profit for A and B increase to $2 each, you will want to trade excess blobs for globs. 4. Starting with the same scenario, where A and B each make S1 profit, your supplier has up 120 blobs and 120 globs available, but you can only store 200 total blobs and globs: a. The most profit you can make is $25 b. There are multiple solutions that allow for maximum profit. You would pay up to S5 for additional storage space for 40 blobs and globs. d. Ifthe profit on B increases to $2, your optimal solution is constrained by storage spac e. In order to maximize profit you must produce at least 3 each of A and B. c.Explanation / Answer
Question 1: option a is correct.
Since the profit from both A and B is same, profit is maximized when the output is maximized. Output maximizing happens when 15 of each products are produced.
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