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UESTION ONE [50] Brass Lid produces two products, the Masso and the Rasso. Budgeted data relating to these products on a unit basis for September
UESTION ONE [50] Brass Lid produces two products, the Masso and the Rasso. Budgeted data relating to these products on a unit basis for September are as followst. Each unit of product incurs costs of machining and assembly. The total capacity avalable for September is budgeted to be 700 machining and 1000 hours of assembly, the cost of this capacity being fixed at R7000 and R10 000 respectively for the month, whatever the level of usage made of it. The number of hours required in each of these departments to complete one unit of output is as follows: Under the terms of the South African government special controls have been introduced whereby the selling prices are fixad and the maximum permitted output of ether product is 400 units. At the present controlled selling prices the demand for the product exceeds this considerably. You are required: 1.1. Using graphic linear programming method, determine the number of units to be produced by Brass Ltd to maximize profi. show all your workings to eam more marks. (36) 1.2. Solving simultaneously, prove the accuracy of the answer in 1.1 . 1.3. Calculate the profit earned for the month of September. 1.4. Outline some key assumptions and limitations pertaining to linear programming. (6)
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