Product Mix Decision, Single and Multiple Constraints, Basics of Linear Programming Desayuno Products, Inc., produces cornflakes and branflakes. The manufacturing process is highly mechanized; both products are produced by the same machinery by using different settings. For the coming period, 200,000 machine hours are available. Management is trying to decide on the quantities of each product to produce. The following data are available: Cornflakes Branflakes Machine hours per unit 1.00 0.50 Unit selling price $2.50 $3.00 Unit variable cost $1.50 $2.25 Required: 1. Determine the units of each product that should be produced in order to maximize profits. If a product should not be produced at all, enter "0" as your answer. Cornflakes units Branflakes units 2. Because of market conditions, the company can sell no more than 150,000 boxes of cornflakes and 300,000 boxes of branflakes. Do the following: a. Formulate the problem as a linear programming problem. If required, round your answers to the nearest cent. If a value is zero, enter "0" as your answer. Let X = Number of boxes of cornflakes Let Y = Number of boxes of branflakes Objective function: Z = $ X + $ Y Subject to: Machine constraint: X + Y Demand constraint: x Demand constraint: Y X Y b. Select the optimal mix graph. (Units are in thousands) a. 400 350 E D 300 250 200 150 100 C. 50 A 0 400 350 300 250 200 150 100 50 50 0 C B 0 50 100 150 200 250 300 b. 400 350 300 250 200 150 100 50 0 d. 400 350 300 250 200 0 50 100 150 200 250 150- 100 50 0 0 50 100 150 200 250 300 0 50 100 150 200 250 Correct Graph is a c. Compute the maximum contribution margin given the optimal mix.