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Repco produces three drugs, A, B, and C, and can sell these drugs in unlimited quantities at unit prices $8, $70, and $100, respectively. Producing
Repco produces three drugs, A, B, and C, and can sell these drugs in unlimited quantities at unit prices $8, $70, and $100, respectively. Producing a unit of drug A requires one hour of labor. Producing a unit of drug B requires two hours of labor and two units of drug A. Producing one unit of drug C requires three hours of labor and one unit of drug B. Any drug A that is used to produce drug B cannot be sold separately, and any drug B that is used to produce drug C cannot be sold separately. A total of 4000 hours of labor are available. Repco wants to use LP to maximize its sales revenue. The management in the company has obtained inputs for the problem from various sources including the following: The company sets its selling prices, dictated by the market conditions in the pharmaceutical industry. The available labor hours are based on the size of the current workforce assigned to the production of these drugs. These are flexible quantities, depending on whether workers could be diverted from other duties to work on these drugs and whether new labor could be hired. The labor
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