Linear Programming: Machine-Hour Constraint. Combo Company produces two products: Algon and Grine, which provide contribution margins of

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Linear Programming: Machine-Hour Constraint. Combo Company produces two products: Algon and Grine, which provide contribution margins of $5 and $8 per unit, respectively. Each product goes through two processing departments. Each unit of Algon requires 50 machine hour in Department I and 40 machine hour in Department 2.

Grine requires 50 hour in Department. I and 25 hour in Department 2.

A maximum of 800 hours in Department 1 and 1.000 hours in Department 2 are available per month.

a. Assuming that the firm wants to maximize contribution margin, determine the objective function.

b. Determine the constraints.

c. Regardless of whether it is the optimal amount, calculate the maximum amount of Algon that can be produced.

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Managerial Accounting

ISBN: 9780759314078

6th Edition

Authors: Pierre L. Titard

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