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Kilkenny Manufacturing Ltd

Question 99

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Kilkenny Manufacturing Ltd.produces two products, lawn mowers and weed wackers.Lawn mowers have a unit contribution margin of $80, and weed wackers have a unit contribution margin of $35.The demand for lawn mowers exceeds their production capacity, which is limited by available direct labour and machine hours.The maximum demand for week wackers is 500 per week.Management desires that the product mix should maximize the weekly contribution toward fixed costs and profits.Direct manufacturing labour is limited to 900 hours a week and 700 hours is all that the company's outdated machines can run a week.The lawn mowers require 1.0 hours of labour and 0.5 machine hour.Weed wackers require 0.5 labour hours and 0.25 machine hours.Required:
Formulate the linear programming objective function and constraints necessary to determine the optimal product mix.

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