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 150,000 x units Branflakes 300,000 X 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 s Demand constraint: X 5 Demand constraint: Y s X 2 Y b. Select the optimal mix graph. (Units are in thousands) 400 400 350 350 E D 300 300 250 250 200 200 150 150 C 100 100 50 50 B 0 0 0 50 100 200 150 250 0 300 b. 50 100 150 a. 200 250 300 400 400 350 350 300 300 250 250 200 200 150 150 100 100 TT 50 50 0 0 1 0 50 100 150 c. c 200 250 0 300 d. 50 100 150 250 200 300 c. 50 100 150 200 Correct Graph is a C. Compute the maximum contribution margin given the optimal mix