Coffee Ltd AWhat Is the Objective Function Being Maximized?
B

question 12

Essay

Coffee Ltd.manufactures two different miniature models of furniture, a table and a chair. The company has 500 metres of lumber, 400 machine hours, and 600 direct labour hours available for production. The miniature tables and chairs provide £5 and £4 of contribution margin, respectively.
The time and lumber requirements to build a miniature table or chair are as follows: $\begin{array}{lll}&\text { Table } & \text { Chair } \\\text { Metres oflumber per unit } & 5 & 2 \\\text { Machine hours per unit } & 2 & 3 \\\text { Direct labour hours per unit } & 4 & 2\end{array}$
a.What is the objective function being maximized?
b.What are the constraint equations?
c.Graph the constraint equations. Identify the feasible region.
d.What is the optimal solution?

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Definitions:

Business Judgment Rule

A legal principle that protects company directors from liability for decisions made in good faith and with a reasonable basis.

Officer's Roles

Responsibilities and duties assigned to officers within an organization, including executing company policies and managing operational activities.

Qualifications

The skills, attributes, or credentials required to perform a particular job or task.

Stated Corporate Value

The value of a corporation as listed in its corporate documents or financial statements, often used in legal and financial contexts.