Note: This Problem Requires Excel Use Separable Programming to Find the Optimal Production Plan

question 17

Multiple Choice

Note: This problem requires Excel.
A firm offers three different prices on its products, depending upon the quantity purchased. Since available resources are limited, the firm would like to prepare an optimal production plan to maximize profits. Product 1 has the following profitability: $10 each for the first 50 units, $9 each for units 51-100, and $8 for each unit over 100. Product 2's profitability is $20 each for the first 25 units, $19 each for units 26-50, and $18 each for each unit over 50. The products each require 3 raw materials to produce (see table below for usages and available quantities) .
$\begin{array}{|c|r|r|r|}\hline\begin{array}{c}\text { Raw } \\\text { Material }\end{array} & \begin{array}{c}\text { Product 1 usage } \\\text { (pounds per unit) }\end{array} & \begin{array}{c}\text { Product 2 usage } \\\text { (pounds per unit) }\end{array} & \begin{array}{c}\text { Available Quantity } \\\text { (pounds) }\end{array} \\\hline \text { A } & 5 & 12 & 1,000 \\\hline \text { B } & 4 & 10 & 2,000 \\\hline \text { C } & 7 & 6 & 1,500 \\\hline\end{array}$
Use separable programming to find the optimal production plan.

• A) 100 units Product 1, 100 units Product 2
• B) 100 units Product 1, 50 units Product 2
• C) 140 units Product 1, 25 units Product 2
• D) 25 units Product 1, 140 units Product 2
• E) 100 units Product 1, 140 units Product 2

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