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:

Consolidated Net Income

The total profit of a corporation and its subsidiaries after taxes, interest, depreciation, and other expenses have been deducted, reflecting the overall earnings of the conglomerate.

Parent

A company that controls or owns more than half of another company's stock, thereby having control over its subsidiary.

Subsidiary

A company controlled by another company, referred to as the parent company, through ownership of more than half of its voting stock.

Impairment

The reduction in the recoverable value of a fixed asset or goodwill below its book value on the balance sheet, often leading to an expense in the income statement.