Question
Betty DeRose, Inc. produces and sells two products, L and V. Revenue and cost information for the two products from last month appear below: Product
Betty DeRose, Inc. produces and sells two products, L and V. Revenue and
cost information for the two products from last month appear below:
Product LProduct V
selling price per unit ...........$14.90$15.80
variable costs per unit ..........$ 5.30$ 8.70
For the coming month, Betty would like to use linear programming in order
to maximize monthly profits.
Each month Betty has 60,000 direct labor hours available and 72,000 machine
hours available. Product L requires 8 direct labor hours for each unit and
4 machine hours for each unit. Product V requires 6 direct labor hours for
each unit and 9 machine hours for each unit.
Calculate the number of units of Product L that should be produced in order
to maximize net income.
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