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Driverco produces drivers at plants 1 and 2. It costs 125x 1/2 dollars to produce x units at Plant 1 and 235x 1/3 dollars to
Driverco produces drivers at plants 1 and 2. It costs 125x1/2 dollars to produce x units at Plant 1 and 235x1/3 dollars to produce x units at Plant 2. Each plant can produce up to 500 units. Each unit produced can be sold for $10. At most 800 drivers can be sold. Determine how Driverco can maximize its profit.
A2 D E F B C 1 Pricing drivers 2 3 Costs of producing x units at each plant are of form ax, where 4 Plant 1 Plant 2 5 a 6 b 7 8 Unit selling prices 9 Plant 1 Plant 2 10 11 12 Number produced 13 Plant 1 Plant 2 Total Max sales 14 15 16 Capacity 17 18 Cost 19 Revenue 20 Profit 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39Step by Step Solution
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