QUESTION 2 Use the following description for Questions 2-6. Consider the following decision problem. A company sells three different products: laptops, PCs, and tablets. The company want to decide how many laptops, PCs, and tablets to produce next quarter to maximize their total net profit from selling these products. The net profit associated with selling: a laptop is $800, a PC is $1000, and a tablet is $300. Each laptop costs $500 to produce, each PC costs $650 to produce, and each tablet costs $200 to produce. Total cost associated with producing all the products (laptops, PCs and tablets) to be sold next quarter cannot exceed $180,000. The market research shows that the company can sell at most 50 PCs and at most 100 tablets.

a. Is the following statement true or false? This is a linear programming (LP) model where the objective function is a maximization.

True False

b. What are the decision variables in this linear programming (LP) model?

Cost of each product (laptop, PC and tablet)

Total net profit from selling the products (laptop, PC and tablet)

Number of products to produce next quarter (laptop, PC and tablet)

Market restrictions associated with each product (laptop, PC and tablet)

c. Which of the following is not a constraint of this model?

		The net profit gained from selling a laptop is $800.
		The company can sell at most 50 PCs.
		Total cost associated with producing all the products (laptops, PCs and tablets) to be sold next quarter cannot exceed $180,000.
		The market research shows that the company can sell at most 100 tablets.