uo Company manufactures two products, Uno and Dos. Contribution margin data follow.

	Uno				Dos
Unit sales	$	13.00			$	31.00
Less variable cost:
Direct material	$	7.00			$	5.00
Direct labor		1.00				6.00
Variable overhead		1.25				7.50
Variable selling and administrative cost		0.75				0.50
Total variable cost	$	10.00			$	19.00
Unit contribution margin	$	3.00			$	12.00

Assume that the direct-labor rate is $24 per hour, and 10,000 labor hours are available per year. In addition, the company has a short supply of machine time. Only 8,000 hours are available each year. Uno requires 1 machine hour per unit, and Dos requires 2 machine hours per unit.

Required: Formulate the production planning problem as a linear program, assuming X, Y 0. X denotes Uno and Y denotes Dos.

2. Identify the objective function.
3. Identify the constraints.

Identify the objective function.

Z

=

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X

+

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Y