The following information is available for Walters Furniture Company, which sells two products:
$\begin{array}{lcr}
&\text { Table X}&\text { Table Y}\
\text { Processing time } & 4 \text { hours } & 6 \text { hours } \
\text { Metal used } & 30 \mathrm{sq} \cdot \mathrm{m} . & 18 \mathrm{sq} . \mathrm{m} \
\text { Selling price } & \$ 200.00 & \$ 100.00 \
\text { Variable cost } & \$ 150.00 & \$ 60.00 \
\text { Fixed cost. } & \$ 30 . \mathrm{n} 0 & \$ 30.00
\end{array}$ There are 200 hours available in the plant and 200 square metres of metal available per operating period.
-Refer to the figure.What is the objective function for maximizing sales?
A)Maximize 50X + 40Y
B)Maximize 180X + 90Y
C)Maximize 200X + 100Y
D)Minimize 200X + 100Y

Question

Quizplus · Accepted Answer

The objective function for maximizing sales should reflect the total sales revenue generated from selling both products. The selling price of Table X is $200 and of Table Y is $100, so the objective function to maximize sales would be to maximize the total revenue, which is $200X + 100Y$, where X and Y represent the number of Table X and Table Y sold, respectively.

The Following Information Is Available for Walters Furniture Company, Which