An electronics firm produces two models of pocket calculators: the A-100 (A) and the B-200 (B). Each model uses one circuit board, of which there are only 2,500 available for this week's production. In addition, the company has allocated a maximum of 800 hours of assembly time this week for producing these calculators. Each A-100 requires 15 minutes to produce while each B-200 requires 30 minutes to produce. The firm forecasts that it could sell a maximum of 4,000 of the A-100s this week and a maximum of 1,000 B-200s. Profits for the A-100 are $1.00 each and profits for the B-200 are $4.00 each. The firm's goal is to maximize profits.
What is the objective function?
A) P = 4A + 1B
B) P = 0.25A + 1B
C) P = 1A + 4B
D) P = 1A + 1B
E) P = 0.25A + 0.5B

Question

Quizplus · Accepted Answer

The objective function is the profit function, which is given as P = 1A + 4B since the profits for A-100 and B-200 are $1.00 and $4.00, respectively. The goal is to maximize profits, and the best choice is to produce the maximum number of B-200 calculators since they have a higher profit margin. However, the production of B-200 calculators is limited by the availability of circuit boards and assembly time. Therefore, the optimal solution involves producing as many B-200 calculators as possible while still using all available circuit boards and staying within the assembly time limit. The exact solution depends on the specific constraints and linear programming techniques used.

An Electronics Firm Produces Two Models of Pocket Calculators: the A-100