A manufacturing company wants to maximize profits on products A, B, and C. The p

Question

A manufacturing company wants to maximize profits on products A, B, and C. The profit $15 for C. The production requirements and departmental capacities are as follows Department Production requirement Departmental capacity is $3 for A. S6 for B, and by product Chours) A B C Total hours) Assembling Painting 30,000 38,000 28,000 What is the maximum profit in this model? A) $75,000 B) $57,000 C)$225,000 D) $95,000 ve the problem A lumber yard has fixed costs of $3077.80 a day and variable costs of $1.00 per board-foot uced. The company gets $2.10 per board-foot sold.How many board-feet must be produced daily to break even? A) 1865 board-feet B) 3077 board-feet C)2798 board-feet D) 992 board-feet

Explanation / Answer

Since C has profit margins greater than sum of both A &B's profit margin, we can maximize profits by production most number of product C

if we use full 30000 hours of manufacturing to produce 15000 products then we can make a profit of $15*15000=$225000.

thus the maximum profit that we can make is (C)$225000.

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