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Reese Evans, a manufacturer of air filtration equipment, produces two models, the Umidaire and the Depolinaire. Data pertaining to sales price and costs are shown
Reese Evans, a manufacturer of air filtration equipment, produces two models, the Umidaire and the Depolinaire. Data pertaining to sales price and costs are shown in the following table. Reese's firm has already contracted to provide 500 Umidaires and would like to calculate the break-even quantities for both types of units. Formulate the cost-minimizing LP model and solve it. Selling price pre unit: Umidaire: 450 Depolinaire: 700 Variable cost per unit: Umidaire: 240 Deplolinaire 360 Fixed Cost: Uminaire: 150000 Depolinaire: 240000
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