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Question 2 The Granite Company produces two products, A and B in two departments, Assembly and Finishing the following data are available: Product $190 $90
Question 2 The Granite Company produces two products, A and B in two departments, Assembly and Finishing the following data are available: Product $190 $90 Products $130 $50 Unit selling price Unit variable cost Labour hours per unit Assembly Finishing 16 116 16 Total labour hours available per week Assembly: 480 Finishing 320 As the assistant to the general manager you have been asked to advise him as to how many units of each product should be produced and sold in order to maximise weekly net profits Required: (a) State the objective function and the constraints that Granited should use to maximise the total contribution margin generated by the two products (b) What is the maximum profit at the optimal solution
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