A Manager Must Decide on the Mix of Products to Produce

question 12

Essay

A manager must decide on the mix of products to produce for the coming week. Product A requires three minutes per unit for molding, two minutes per unit for painting, and one minute for packing. Product B requires two minutes per unit for molding, four minutes for painting, and three minutes per unit for packing. There will be 600 minutes available for molding, 600 minutes for painting, and 420 minutes for packing. Both products have contributions of $1.50 per unit.
a. Algebraically state the objective and constraints of this problem.
b. Plot the constraints on the grid below and identify the feasible region.

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Definitions:

Gross Earnings

Gross earnings refer to the total income earned by an individual or company before any deductions such as taxes or other withholdings.

Taxes Applied

The implementation of tax rates to various forms of income, activities, or transactions.

FICA Taxes

Federal Insurance Contributions Act taxes, which fund Social Security and Medicare, required to be paid by both employees and employers.

Unemployment Tax Rates

Refers to the taxes that employers must pay to the government, usually at the state level, based on a percentage of the total payrolls of their employees to fund unemployment compensation programs.