Question

In: Advanced Math

Boise Lumber has decided to enter the lucrative prefabricated housing business. Initially, it plans to offer...

Boise Lumber has decided to enter the lucrative prefabricated housing business. Initially, it plans to offer three models: standard, deluxe, and luxury. Each house is prefabricated and partially assembled in the factory, and the final assembly is completed on site. The dollar amount of building material required, the amount of labor required in the factory for prefabrication and partial assembly, the amount of on-site labor required, and the profit per unit are as follows.

Standard Model Deluxe Model Luxury Model
Material $6,000 $8,000 $10,000
Factory Labor (hr) 240 220 200
On-Site Labor (hr) 180 210 300
Profit $3,400 $4,000 $5,000

For the first year's production, a sum of $8,200,000 is budgeted for the building material; the number of labor-hours available for work in the factory is not to exceed 209,000 hr; and the amount of labor for on-site work is to be less than or equal to 243,000 labor-hours. Determine how many houses of each type Boise should produce to maximize its profit from this new venture.

standard model     houses
deluxe model     houses
luxury model     houses

Solutions

Expert Solution

let

x1=standard model

x2=deluxe model

x3=luxury model


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