A Company Manufactures Two Products, a and B, on Machines

question 7

Multiple Choice

A company manufactures two products, A and B, on machines I and II. The company will realize a profit of $3/unit of product A and a profit of $4/unit of product B. Manufacturing 1 unit of product A requires 6 min on machine I and 5 min on machine II. Manufacturing 1 unit of product B requires 9 min on machine I and 4 min on machine II. There are 15 hr of time available on machine I and 9 hr of time available on machine II in each work shift. How many units of each product should be produced in each shift to maximize the company's profit? Find the range of values that the contribution to the profit of 1 unit of product A can assume without changing the optimal solution.
Find the range of values that resource associated with the time constraint on machine I can assume.
Find the shadow price for the resource associated with the time constraint on machine I.

• A) Product A = 60 units, Product B = 60 units
• B) Product A = 60 units, Product B = 60 units
• C) Product A = 60 units, Product B = 50 units
• D) Product A = 50 units, Product B = 50 units

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Definitions:

Materialism

A philosophical viewpoint or personal attitude that places material possessions and physical comfort over spiritual values.

Subjective Well-Being

An individual's self-assessment of their own happiness and life satisfaction.

Lectures

Educational talks or presentations often given by an expert or teacher in front of an audience, primarily for instructional purposes.

Nonverbal Signals

Communication methods without words, such as body language, facial expressions, and gestures.