Figure 25-4
The following information is available for Wilson Trailer Company, which sells two products: $$\begin{array} { l c c }
& \text { Trailer A } & \text { Trailer B } \
\text { Processing time } & 2 \text { hours } & 4 \text { hours } \
\text { Vinyl cover used } & 16 \text { sq. ft. } & 12 \text { sq. ft. } \
\text { Selling price } & £ 50.00 & £ 80.00 \
\text { Variable cost } & £ 35.00 & £ 50.00 \
\text { Fixed cost } & £ 10.00 & £ 20.00
\end{array}$$ There are 100 hours available in the plant and 75 square metres of vinyl available per operating period.
-Refer to Figure 25-4. What is the objective function for maximizing profits?
A)Maximize £15A + £30B
B)Maximize £50A + £80B
C)Maximize £35A + £50B
D)Minimize £15A + £30B

Question

Figure 25-4
The following information is available for Wilson Trailer Company, which sells two products: $$\begin{array} { l c c } 
& \text { Trailer A } & \text { Trailer B } \
\text { Processing time } & 2 \text { hours } & 4 \text { hours } \
\text { Vinyl cover used } & 16 \text { sq. ft. } & 12 \text { sq. ft. } \
\text { Selling price } & £ 50.00 & £ 80.00 \
\text { Variable cost } & £ 35.00 & £ 50.00 \
\text { Fixed cost } & £ 10.00 & £ 20.00
\end{array}$$ There are 100 hours available in the plant and 75 square metres of vinyl available per operating period.
-Refer to Figure 25-4. What is the objective function for maximizing profits?
A)Maximize £15A + £30B
B)Maximize £50A + £80B
C)Maximize £35A + £50B
D)Minimize £15A + £30B

Quizplus · Accepted Answer

The objective function for maximizing profits involves calculating the profit per unit for each product and then maximizing the total profit. Profit per unit for Trailer A is £15 (£50 selling price - £35 variable cost) and for Trailer B is £30 (£80 selling price - £50 variable cost). Therefore, the objective function is to maximize £15A + £30B.

Figure 25-4 the Following Information Is Available for Wilson Trailer

Figure 25-4
the Following Information Is Available for Wilson Trailer