The Following Linear Programming Problem Has Been Written to Plan

question 28

Multiple Choice

The following linear programming problem has been written to plan the production of two products. The company wants to maximize its profits. X₁ = number of product 1 produced in each batch
X₂ = number of product 2 produced in each batch
$$\begin{array} { l l } \text { MAX: } & 150 X _ { 1 } + 250 X _ { 2 } \\\text { Subject to: } & 2 X _ { 1 } + 5 X _ { 2 } \leq 200 - \text { resource 1 } \\& 3 X _ { 1 } + 7 X _ { 2 } \leq 175 - \text { resource } 2 \\& X _ { 1 } , X _ { 2 } \geq 0\end{array}$$ How many units of resource 1 are consumed by each unit of product 1 produced?

• A) 1
• B) 2
• C) 3
• D) 5

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Definitions:

Cost of Goods Manufactured

The total cost of materials, labor, and overhead incurred for products completed during a specific time period.

Factory Overhead

The total of all indirect costs associated with manufacturing, such as indirect labor, maintenance, and utilities that cannot be directly traced to a specific product.

Indirect Labor

Labor costs for employees who assist in the production process but are not directly involved in the creation of the final product, such as supervisors and maintenance workers.

Indirect Materials

Supplies used in the production process that cannot be directly traced to specific products, such as lubricants for machinery.