Question

In: Math

National Business Machines manufactures two models of fax machines: A and B. Each model A costs...

National Business Machines manufactures two models of fax machines: A and B. Each model A costs $100 to make, and each model B costs $140. The profits are $28 for each model A and $41 for each model B fax machine. If the total number of fax machines demanded per month does not exceed 2800 and the company has earmarked no more than $560,000/month for manufacturing costs, how many units of each model should National make each month in order to maximize its monthly profit?

model A units
model B units


What is the optimal profit?
$

Solutions

Expert Solution

The optimal profit is 2800*41 = $ 114800.


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