2. A company sells two different products A and B. The selling price and incremental cost information was as follows.
Product A Product B
Selling price 60 40
Variable cost 30 10
The two products are produced in a common production process and are sold in two different markets. The production process has the capacity of 30,000-man hours. It takes three hours to produce a unit of A and one hour to produce a unit of B. The market has been surveyed and the company officials feel that the maximum number of units of A that can be sold is 6000 and the maximum for B is 12,000 units. Subject to this limitation the two products can be sold in any combination. Formulate LP model and solve to maximize the contribution using simplex method.
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Answer:
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Explanation:
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