A company makes two products,A and B.A sells for $100 and B sells for $90.The variable production costs are $30 per unit for A and $25 for B.The company's objective could be written as: Max 190x₁ − 55x₂.

Question

Quizplus · Accepted Answer

The company's objective seems to maximize profit, which would be calculated as the total revenue minus total costs for products A and B. However, the formula provided is incorrect for calculating profit. The correct approach would involve calculating the profit per unit for each product (selling price minus variable cost) and then maximizing the total profit based on those figures. The formula provided does not correctly represent this calculation.

A Company Makes Two Products,A and B