# A company produces and sells two different products. The demand for each product is unlimited

A company produces and sells two different products. The demand for each product is unlimited, but the company is constrained by cash availability and machine capacity. Each unit of the first and second product requires 3 and 4 machine hours, respectively. There are 20,000 machine hours available in the current production period. The production costs are \$3 and \$2 per unit of the first and second product, respectively. The selling prices of the first and second product are \$6 and \$5.40 per unit, respectively. The available cash is \$4,000: furthermore. 45% of the sales revenues from the first product and 30% of the sales revenues from the second product will be made available to finance operations during the current period. (a) Formulate a linear programming problem that aims at maximizing net income subject to the cash availability and machine capacity limitations. Clearly indicate your decision variables, your objective function, and your constraints. (b) Solve this in Excel. Attach the Answer Report to your HW. Be sure to indicate on it if you worked with anyone else. (c) Suppose that the company could increase its available machine hours by 2,000, after spending \$400 for certain repairs. Should the investment be made?

a) Below is teh formulation and calculation –

Objective Function

Maximize Net income Z = (6-3)P1+(5.4-2)P2 = 3P1+3.4P2

subject to constraints –

Machine hours — 3P1+4P2 <= 20000

Cash —– 3P1+2P2 <= 4000+0.45*(6P1)+0.3*(5.4P2) => 0.3P1+0.38P2 <=4000

Non-negativity constraint — P1,P2 >=0

b) Solving the above equations through Excel solver, the net income = 17000 \$

c) Below is the calculation based on the increase in machine hours and after spending cash for repairs.

Pages (550 words)
Approximate price: -

Help Me Write My Essay - Reasons:

Best Online Essay Writing Service

We strive to give our customers the best online essay writing experience. We Make sure essays are submitted on time and all the instructions are followed.

Our Writers are Experienced and Professional

Our essay writing service is founded on professional writers who are on stand by to help you any time.

Free Revision Fo all Essays

Sometimes you may require our writers to add on a point to make your essay as customised as possible, we will give you unlimited times to do this. And we will do it for free.

Timely Essay(s)

We understand the frustrations that comes with late essays and our writers are extra careful to not violate this term. Our support team is always engauging our writers to help you have your essay ahead of time.

Customised Essays &100% Confidential

Our Online writing Service has zero torelance for plagiarised papers. We have plagiarism checking tool that generate plagiarism reports just to make sure you are satisfied.

Try it now!

## Calculate the price of your order

Total price:
\$0.00

How it works?

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

HOW OUR ONLINE ESSAY WRITING SERVICE WORKS

Let us write that nagging essay.

By clicking on the "PLACE ORDER" button, tell us your requires. Be precise for an accurate customised essay. You may also upload any reading materials where applicable.

Pick A & Writer

Our ordering form will provide you with a list of writers and their feedbacks. At step 2, its time select a writer. Our online agents are on stand by to help you just in case.

Editing (OUR PART)

At this stage, our editor will go through your essay and make sure your writer did meet all the instructions.