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TOM, Inc. produces and sells two products, L and V. Revenue and cost information for the two products from last month appear below: Product L
TOM, Inc. produces and sells two products, L and V.
Revenue and cost information for the two products from last
month appear below:
Product L Product V
selling price per unit ........... $15.00 $12.00
variable costs per unit .......... $ 8.00 $ 7.00
For the coming month, Betty would like to use linear programming
in order to maximize monthly profits.
Each month Betty has 80,000 direct labor hours available and 60,000
machine hours available. Product L requires 5 direct labor hours for
each unit and 2 machine hours for each unit. Product V requires 4
direct labor hours for each unit and 8 machine hours for each unit.
Calculate the number of units of Product L that should be produced
in order to maximize net income.
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