Pretiosa Ltd. has two departments, Painting and Polishing. They produce 2 products. Product A needs 6 hours in painting and 6 hours in polishing. Product B needs 2 hours in painting and 4 hours in polishing. Painting has 24 hours available and polishing 18 hours. Total variable costs are $ 20 and $15 for A and B respectively. A sells for $25 and B for $18. The objective function to maximise Pretiosa's profits is:

Question

Quizplus · Accepted Answer

The profit for each product is calculated by subtracting the variable cost from the selling price. For Product A, the profit is $25 - $20 = $5. For Product B, the profit is $18 - $15 = $3. Therefore, the objective function to maximize profits is MAX $5A + $3B.