Question
The Furniture Company (TFC) sells tables and chairs that are constructed usinga combination of small and large blocks. As the figures below illustrate, a table
The Furniture Company (TFC) sells tables and chairs that are constructed usinga combination of small and large blocks. As the figures below illustrate, a table is built with two large blocks and two small blocks, and a chair is built with one large block and two small blocks.
If used in production, a large block costs $8, and a small block costs $5. In manufacturing the furniture, three labor hours are required per table, and two labor hours are required per chair.
The company now has eight small blocks and six large blocks available; 11 labor hours are also available. A table sells for $57, and a chair sells for $37.
Assume that labor cost is negligible and that there is no limit on market demand for tables and chairs.
Help TFC maximize its profit by determining a) the number of tables and chairs it should build, and b) the corresponding profit.
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