4 Chemco produces three products: 1, 2, and 3. Each pound of raw material costs $25. It undergoes processing and yields 3 oz of product 1 and 1 oz of product 2. It costs

$1 and takes 2 hours of labor to process each pound of raw material. Each ounce of product 1 can be used in one of three ways.

It can be sold for $10/oz.

It can be processed into 1 oz of product 2. This requires 2 hours of labor and costs $1.

It can be processed into 1 oz of product 3. This requires 3 hours of labor and costs $2.

Each ounce of product 2 can be used in one of two ways.

It can be sold for $20/oz.

It can be processed into 1 oz of product 3. This requires 1 hour of labor and costs $6.

Product 3 is sold for $30/oz. The maximum number of ounces of each product that can be sold is given in Table 23.

A maximum of 25,000 hours of labor are available.

Determine how Chemco can maximize profit.

Transcribed Image Text:

TABLE 23 Product Oz 1 5,000 23 5,000 3,000