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In: Accounting

If you have these 2 constraints: 0.6R+4D £180,000 Machine Hour constraint 3R+5D £150,000 Direct Labor Hour...

If you have these 2 constraints:

0.6R+4D £180,000 Machine Hour constraint

3R+5D £150,000 Direct Labor Hour constraint

Required:

a Draw a graph showing the possible production plans for this company.

b- From your opinion where is the feasible area of the production plan. Explain your answer.

Solutions

Expert Solution

Plotting of constraint line on graph:

The feasible area for machine hour constraint is O-E-F

The feasible area for labor hour constraint O-A-B

The common feasible area for which both constraints satisfied is O-A-B-O.

According to extreme points method, the optimal solution can be on points O, A, and B.

At point O, R = 0 , D = 0

At point A, R = 50,000 and D = 0

At point B, R = 0 and D = 30,000

ekkarill92 answered 11 months ago
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