Question
Three raw materials are used to produce 3 products: a fuel additive (F), a solvent base (S), and a carpet cleaning fluid (C). The profit
Three raw materials are used to produce 3 products: a fuel additive (F), a solvent base (S), and a carpet cleaning fluid (C). The profit contributions are $40 per ton for the fuel additive, $30 per ton for the solvent base, and $52 per ton for the carpet cleaning fluid. Each ton of fuel additive is a blend of 0.4 tons of material 1 and 0.6 tons of material 3. Each ton of solvent base requires 0.5 tons of material 1, 0.2 tons of material 2, and 0.3 tons of material 3. Each ton of carpet cleaning fluid is a blend of 0.6 tons of material 1, 0.1 tons of material 2, and 0.3 tons of material 3. RMC has 22 tons of material 1, 8 tons of material 2, and 23 tons of material 3. Setup costs are $180 for the fuel additive, $50 for the solvent base, and $359 for the cleaning fluid. Maximum production capacity for the fuel additive is 50 tons, for the solvent base is 25 tons, and for the cleaning fluid is 40 tons.
If the firm wants to maximize profits from producing the 3 products net of their setup costs, how many units of each of the 3 products should it produce?
What is the maximized net profit?
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