TicToc produces product A and product B.These products have the following resource requirements. The firm has a weekly production budget of $3000 and a maximum of 1000 hours of labor per week.Each A produced generates $35.00 in profit for the company.Each B produced generates $25.00 in profit for the company.If the company produces 100 units of A and 200 units of B the value of the objective function is equal to
A)$2,800.
B)$8,500.
C)$9,500.
D)$11,800.

Question

TicToc produces product A and product B.These products have the following resource requirements.  The firm has a weekly production budget of $3000 and a maximum of 1000 hours of labor per week.Each A produced generates $35.00 in profit for the company.Each B produced generates $25.00 in profit for the company.If the company produces 100 units of A and 200 units of B the value of the objective function is equal to
A)$2,800. 
B)$8,500. 
C)$9,500. 
D)$11,800.

Quizplus · Accepted Answer

To determine the objective function, we need to calculate the total profit generated by producing 100 units of A and 200 units of B.

Total profit generated by producing 100 units of A: 
100 x $35.00 = $3,500

Total profit generated by producing 200 units of B: 
200 x $25.00 = $5,000

Total profit: $3,500 + $5,000 = $8,500

Since $8,500 is the highest value of the objective function that we can obtain from producing 100 units of A and 200 units of B, the best choice is to produce 100 units of A and 200 units of B.

TicToc Produces Product a and Product B