A Company Has the Following Inputs and Cost Structure They Must Also Use the Following Minimum Quantities

question 12

Essay

A company has the following inputs and cost structure.
$$\begin{array} { l l l l } \text { Product } & \mathrm { X } & \mathrm { Y } & \mathrm { Z } \\\text { Ingredient A } & 3 & 2 & 4 \\\text { Ingredient B } & 2 & 3 & 1 \\\text { Ingredient C } & 1 & 0 & 2 \\\text { Ingredient D } & 6 & 8 & 4 \\\text { Cost per unit } & 0.00125 & 0.0025 & 0.015625\end{array}$$ They must also use the following minimum quantities.
A 120, B 80, C 40, D 240
The is also a maximum of Z of 80 units.
a) Calculate how many of each product (X, Y, Z) should be produced.
b) How much is the minimized total cost?

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Definitions:

Present Intent

Present intent is a legal term referring to a person's immediate intention or determination to perform a particular act or to enter into a contract at the current moment.

Delivery

The process of transferring goods from one party to another.

Personal Property

Tangible or intangible items that belong to an individual or business, excluding real estate.

True Owner

The individual or entity that holds the legitimate rights to ownership or possession of property.