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Camco (pty) Ltd is contemplating the introduction of 2 new product lines. Product A will sell for R100,000 per unit and Product B for R200,000

Camco (pty) Ltd is contemplating the introduction of 2 new product lines. Product A will sell for R100,000 per unit and Product B for R200,000 per unit. In order to introduce these two new products, the manufacturer must consider the following: a)fixed capital outlay cap( Tech and fixed cost)= R800M b) Operating cost outlay cap(production & marketing)= R800M..(c) Human Resources outlay ( all skill levels)= R400M. The firm has decided that Product A is the main product line( "flagship"). Technically the total fixed costs outlay is for Product A, but Product B will be produced on the same production line. Product schedules will cater for this state of affairs. The estimated required outlay for a unit of Product A is R200,000( 60% fixed costs, 20% operating costs and 20% Human resources costs). The estimated cost outlay for a unit of Product B is R100,000( 70% operating costs and 30% Human resources. Questions: (1.) state the primal problem & constraint equations. (2.) Illustrate the feasible region with an aid of diagram. (3) Show the corner point solutions.(4) Final solutions

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