Question
A production line equipment manufacturer is planning for next year's production. There are three types of products, A, B, and C. They cost $250,000, $300,000,
A production line equipment manufacturer is planning for next year's production. There are three types of products, A, B, and C. They cost $250,000, $300,000, and $450,000 per unit respectively, including their share of operating and overhead costs. Sales contracts for A, B, and C are estimated as $280,000, $336,000, and $504,000, respectively. The company has a total budget including cash and credit of $45,000,000 for next year. Market research shows that their products need to include a minimum of 15% type A, 25% type B, and 25% type C. All manufactured units must be complete. They do not produce a fraction of equipment using the available time and budget. The maximum annual production capacity is 120 units of all types. Develop a model for this problem and find the optimal solution to maximize the profits. How many units of A should be built? Please show steps using Excel Solver
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