BUS309: Module B Assignment

1. If cars sell for $500 profit and trucks sell for $300 profit, which of the following represents the objective function? A) Maximize profit = 500C + 300T B) Minimize profit = 500C + 300T C) Maximize profit = 500C - 300T D) Minimize profit = 300T - 500C E) Maximize profit = 800(T + C)

2. A firm makes two products, Y and Z. Each unit of Y costs $10 and sells for $40. Each unit of Z costs $5 and sells for $25. If the firm's goal were to maximize profit, what would be the appropriate objective function? A) Maximize profit = $40Y = $25Z B) Maximize profit = $40Y + $25Z C) Maximize profit = $30Y + $20Z D) Maximize profit = 0.25Y + 0.20Z E) Maximize profit = $50(Y + Z)

3. A manager must decide on the mix of products to produce for the coming week. Product A requires three minutes per unit for molding, two minutes per unit for painting, and one minute for packing. Product B requires two minutes per unit for molding, four minutes for painting, and three minutes per unit for packing. There will be 600 minutes available for molding, 600 minutes for painting, and 420 minutes for packing. Both products have contributions of $1.50 per unit. Algebraically state the objective and constraints of this problem. What combination of A & B will yield the optimum for this problem? Sensitivity/ shadow price: If you were to increase to increase available minutes for molding by 1, how much would be the potential gain or increase in profit?

4. What combination of x and y will yield the optimum for this problem? Maximize $3x + $15y, subject to (1) 2x + 4y 12 and (2) 5x + 2y 10 and (3) x, y 0.