Question

Company X manufactures four different types of toys for kids including cars, bikes, plane and
ship. The gross margin, production, and profit are listed below for each items are shown below:
Bike
Plane
Ship
1
Product
Gross margin/unit
Minutes/unit
Gross margin/minute
Maximum production
Profit
0.50
0.60
280000
112000
18667
140000
84000
145 600
14000
168000
Let the production capacity of the machine used for production is 4500 hours per year. What would
be the effect on optimal solution arid profit, if the gross margin for plane would become 0.85?
(A) Optimal solution and profit both increase
(B) Optimal solution and profit both remain unchanged
(C) Profit would increase, but change in optimal solution cannot be determined
(D) Optimal solution will remain same, but profit will increase
Answer​

Answer 1

Answer:

d

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