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A Company Makes Products a and B from 2 Resources

Question 80

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A company makes products A and B from 2 resources, labor and material. The company wants to determine the selling price which will maximize profits. A unit of A costs 30 to make and demand is estimated to be 50 − .09 * Price of A. A unit of B costs 20 to make and demand is estimated to be 30 − .14 * Price of B. The utilization of labor and materials and the available quantity of resources is shown in the table. A reasonable price for the products is between 90 and 140. A company makes products A and B from 2 resources, labor and material. The company wants to determine the selling price which will maximize profits. A unit of A costs 30 to make and demand is estimated to be 50 − .09 * Price of A. A unit of B costs 20 to make and demand is estimated to be 30 − .14 * Price of B. The utilization of labor and materials and the available quantity of resources is shown in the table. A reasonable price for the products is between 90 and 140.   Let X<sub>1</sub> = demand for As and X<sub>2</sub> = demand for Bs. Let P<sub>1</sub> = price for As and P<sub>2</sub> = price for Bs. Formulate the NLP for this company Let X1 = demand for As and X2 = demand for Bs.
Let P1 = price for As and P2 = price for Bs.
Formulate the NLP for this company

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