Kane Manufacturing Has a Division That Produces Two Models of Fireplace

question 14

Multiple Choice

Kane Manufacturing has a division that produces two models of fireplace grates, model A and model B. To produce each model A grate requires 2 lb of cast iron and 6 min of labor. To produce each model B grate requires 4 lb of cast iron and 3 min of labor. The profit for each model A grate is $2, and the profit for each model B grate is $1.50. 1,000 lb of cast iron and 20 labor-hours are available for the production of grates each day. Because of an excess inventory of model A grates, management has decided to limit the production of model A grates to no more than 200 grates per day. How many grates of each model should the division produce daily to maximize Kane's profits? ​
Use the method of corners to solve the problem. Find the range of values that the coefficient of x can assume without changing the optimal solution. Identify the binding and nonbinding constraints.
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• A) Produce 100 grates of model A, 100 grates of model B; maximum profit of $504; Range: ; Constraints 2 and 3 are binding; constraint 1 is not. ​
• B) Produce 200 grates of model A, 100 grates of model B; maximum profit of $500; Range: ; Constraints 1 and 2 are binding; constraint 3 is not. ​
• C) Produce 100 grates of model A, 200 grates of model B; maximum profit of $500; Range: ; Constraints 1 and 2 are binding; constraint 3 is not. ​

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Definitions:

Consummate Love

A type of love characterized by the presence of intimacy, passion, and commitment, according to Sternberg's theory of love.

Companionate Love

A form of love characterized by deep affection, friendship, and emotional intimacy, often found in long-term relationships.

Agape

In John Lee’s typology of love, altruistic love.

Pragma

In John Lee’s typology of love, practical love.