Question
Neptunite Baryte (NB) produces two models of childrens climbers, Toddler and Junior. Sales of Toddler provide a $15 contribution margin per climber; sales of Junior
Neptunite Baryte (NB) produces two models of childrens climbers, Toddler and Junior. Sales of Toddler provide a $15 contribution margin per climber; sales of Junior provide a $20 contribution margin per unit. All childrens climbers are started in the Forming Department and completed in the Finishing Department. In the Forming Department a special type of super strength bamboo is used for climber formation. Due to global shortages, NB cannot get more than 2,000 meters of this bamboo per month. The Toddler model requires 1 meter of bamboo per climber and the Junior model requires 1.5 meters. Special machinery in the Finishing Department cannot be used more than 3,000 hours per month. Both models require 2 hours per climber with this machinery to finish. NB can sell as much as it can produce of Toddler but cannot sell more than 750 climbers of Junior per month.
REQUIRED:
1. What is Neptunite Barytes objective function? (1 mark)
2. State the equations that represent Neptunite Barytes constraints?
(2 marks)
3. Determine the product mix that will maximize the constrained resources. (6 marks)
4. At the point determined above, how much profit will be made? (1 mark)
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