Question

A firm produces three products: A, B, and C. Each requires 3 resources in the production process: 1, 2, and 3. There are 15,000, units of resource 1 available. There are 17,000 units of resource 2 available. There are 19,000 units of resource 3 available. Product A requires 4 units of resource 1, 3 units of resource 2, and 5 units of resource 3. Product B requires 7 units of resource 1, 6 units of resource 2, and 5 units of resource 3. Product C requires 6 units of resource 1, 5 units of resource 2, and 4 units of resource 3. Product A has a net per unit profit of $125, product B has a net per unit profit of $150, and product C has a net per unit profit of $225. We must make at least 500 units of each product. However, we must not make more than 1,200 units of each product. Including each specific equation, how many constraints are there in this problem as if you were using solver on excel? Also if the goal of the firm is to maximize profits, how many units of product A, B, and C should be produced?

Answer #1

There are 5 constraints in this problem.

The solver parameters are:

The solution is:

The solution is:

A = 0

B = 0

C = 1200

Z = 270000

A firm produces three products: A, B, and C. Each requires 3
resources in the production process: 1, 2, and 3. There are 15,000,
units of resource 1 available. There are 17,000 units of resource 2
available. There are 19,000 units of resource 3 available. Product
A requires 4 units of resource 1, 3 units of resource 2, and 5
units of resource 3. Product B requires 7 units of resource 1, 6
units of resource 2, and 5 units...

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Use the Excel Solver (or graphical analysis) to answer the
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Starting with the original scenario, where A and B each make $1
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concerning the three products follow (per unit): Product A B C
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Benoit Company produces three products—A, B, and C. Data
concerning the three products follow (per unit):
Product
A
B
C
Selling price
$
84.00
$
70.00
$
74.00
Variable expenses:
Direct materials
25.20
21.00
9.00
Other variable expenses
25.20
31.50
42.80
Total variable expenses
50.40
52.50
51.80
Contribution margin
$
33.60
$
17.50
$
22.20
Contribution margin ratio
40
%
25
%
30
%
The company estimates that it can sell 750 units of each product
per month. The same...

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concerning the three products follow (per unit):
Product
A
B
C
Selling price
$
80.00
$
60.00
$
72.00
Variable expenses:
Direct materials
24.00
15.00
9.00
Other variable expenses
24.00
33.00
45.00
Total variable expenses
48.00
48.00
54.00
Contribution margin
$
32.00
$
12.00
$
18.00
Contribution margin ratio
40
%
20
%
25
%
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