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##### Objective Function Two Questions

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Question;Use the following information to answer Question 20 and 21.In order to increase its profit, CQE Inc. is considering the possibility of adding a new product, a calculator, to its product line. Three different types of calculator can be manufactured, each requiring a \$ 100,000 investment. The information concerning each calculator is shown below:Model123Sales(Units)50,000300,000100,000Price\$55\$27\$35Cost ofMaterials\$15\$12\$13LabourHours1.00.20.5OverheadCosts\$9\$10\$7The labour cost is \$16 per hour, and 60% of overhead costs are variable. There are 3,000 hours available each month for the production of these calculators. In order to ship the calculators, the company has 27,000 boxes available. CQE can pack four calculators of type 2 or four calculators of type 3 in one box, whereas only one type 1 calculator fits in a box. Where:X1 = quantity of calculator 1X2 = quantity of calculator 2X3 = quantity of calculator 320) What is the objective function that will maximize the profit (Max Z) of the company?a) Max Z = 55X1 + 27X2 + 35X3b) Max Z = 20.4X1 + 7.8X2 + 11.2X3c) Max Z = 18.6X1 + 5.8X2 + 9.8X3d) Max Z = 15X1 + 1.8X2 + 7X3 (100,000 3)e) None of the above21) What is the constraint for packaging?a) X1 +(.25) X2 + (.25)X3

Paper#39377 | Written in 18-Jul-2015

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