Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 3 African Designer Jewellers uses diamonds and sapphires to produce two styles of rings. A style A ring requires 2 diamonds, 3 sapphires and

image text in transcribed
image text in transcribed
Question 3 African Designer Jewellers uses diamonds and sapphires to produce two styles of rings. A style A ring requires 2 diamonds, 3 sapphires and 1 hour of Thabo the Jeweller's labour. A style B ring requires 3 diamonds, 2 sapphires, and 2 hours of Thabo's time. Each style A ring sells for R7 000 and each style B ring sells for $15000. All rings produced by Thabo can be sold. At present, African Designer Jewellers has 100 diamonds, 120 sapphires and 70 hours of Thabo's Labour. Extra diamonds can be purchased at a cost of 12 000 each. Market demand requires that the company must produce at least 20 style A rings and at least 25 style Brings. To maximise profit, African Designer Jewellers should solve the following LP model: Max PROFIT = 7000%, + 16000X,5 -2000R subject to Diamonds) 2X, + 3.X, Sapphire) 120 Labour) XI + 2X TO StyleA) XI 20 Style By 25 Extra) and Xi. X). R 20

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introductory Econometrics A Modern Approach

Authors: Jeffrey Wooldridge

7th Edition

1337558869, 978-1337558860

More Books

Students also viewed these Economics questions