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 objective function should be the profit, which is the selling price minus the variable cost. For product A, it is $100 - $30 = $70 per unit, and for product B, it is $90 - $25 = $65 per unit. Therefore, the objective function should be Max 70x₁ + 65x₂.

A Company Makes Two Products,A and B