Tiffany Manufacturing Company produces X and Y with contribution margins per unit of $10 and $90, respectively. Only 200 labour hours and 400 machine hours are available for production.
Time requirements to produce one unit of X and Y are as follows:
$$\begin{array} { l c c }
& \text { Product X } & \text { Product Y } \
\text { Labour hours per unit } & 1 & 2 \
\text { Machine hours per unit } & 5 & 1
\end{array}$$
-Refer to the figure.What is the objective function to maximize profits for Tiffany Manufacturing Company?
A)Maximize 1X + 2Y
B)Maximize 10X + 90Y
C)Minimize 1X + 2Y
D)Minimize 10X + 90Y

Question

Tiffany Manufacturing Company produces X and Y with contribution margins per unit of $10 and $90, respectively. Only 200 labour hours and 400 machine hours are available for production.
Time requirements to produce one unit of X and Y are as follows:
$$\begin{array} { l c c } 
& \text { Product X } & \text { Product Y } \
\text { Labour hours per unit }  & 1 & 2 \
\text { Machine hours per unit } & 5 & 1
\end{array}$$
-Refer to the figure.What is the objective function to maximize profits for Tiffany Manufacturing Company?
A)Maximize 1X + 2Y
B)Maximize 10X + 90Y
C)Minimize 1X + 2Y
D)Minimize 10X + 90Y

Quizplus · Accepted Answer

The objective function to maximize profits involves maximizing the total contribution margin, which is $10 per unit for Product X and $90 per unit for Product Y. Therefore, the objective function is to maximize 10X + 90Y, where X and Y represent the quantities of Products X and Y, respectively.

Tiffany Manufacturing Company Produces X and Y with Contribution Margins