Each coffee table produced by Timothy Kent Designers nets the firm a profit of $
ID: 3006483 • Letter: E
Question
Each coffee table produced by Timothy Kent Designers nets the firm a profit of $9. Each bookcase yields a $12 profit. Kent's firm is small and its resources limited. During any given production period (of 1 week), 10 gallons of varnish and 12 lengths of high quality redwood are available. Each coffee table requires approximately 1 gallon of varnish and 1 length of redwood. Each bookcase takes 1 gallon of varnish and 2 lengths of wood.
Referring to Table 8-3, the solution to the problem is
Select one:
a. T = 0, B = 10.
b. T = 0, B = 6.
c. T = 10, B = 0.
d. None of these
e. T = 8, B = 2.
Explanation / Answer
The critical thing is the length of wood so:
If you made 6 book cases using all the available wood your profit would be $72.
If you made 10 coffee tables using all the available Varnish you profit would be $90 but you would have two lengths of wood left over so you should have made 2 book cases and 2 less coffee table.
Therefore, maximum profit is 8 coffee tables and 2 book cases using all the available varnish and wood, giving you the maximum profit of $96.
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