National Business Machines Corporation Manufactures Two Models of Fax Machines

question 36

Essay

National Business Machines Corporation manufactures two models of fax machines: A and B. Each model A costs $110 to make, and each model B costs $130. The profits are $30 for each model A and $40 for each model B fax machine. If the total number of fax machines demanded each month does not exceed 2,500 and the company has earmarked no more than $600,000/month for manufacturing costs, find how many units of each model National should make each month in order to maximize its monthly profits.
__________ units of model A, __________ units of model B
What is the largest monthly profit the company can make? $ __________

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Definitions:

Mutually Exclusive

Events that cannot occur at the same time, meaning the occurrence of one event makes it impossible for the other event to occur.

Exhaustive

Pertaining to a comprehensive or complete method or approach that leaves no aspect unexplored or unaddressed.

Independent Events

Two or more events where the occurrence or outcome of one event does not affect the occurrence or outcome of another.

Intersection of Events

The set containing all the outcomes that are common to two or more events in probability and statistics.