Product choice using linear programming (Appendix 8 1 ). Tiger Corporation manufactures two products whose contribution margins follow:

Each month Tiger Corporation has only 12.000 hours of machine time and 14.400 hours of labor time available. The amount of time required to make Products A and B follows:

The firm sells all units produced. Management wants to know the number of units of each product the company should make.
Set up the problem in the linear programming format and solve for the optimal production mix.

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Product AB Contribution Margin $10 13