Citrus Ltd. produces 2 products A and B, each requiring direct material and labour. Total labour available is 200 hours, and 300 pounds of material. Each unit of A sells for $10, and B sells for $15. Given the following linear programming information: $$\begin{array} { l l }
\text { Maximise: } & \$ 4 \mathrm {~A} + \$ 5 \mathrm { Y } \
\text { Subject to: } & 3 \mathrm {~A} + 1 \mathrm {~B} ? 200 \
& 2 \mathrm {~A} + 2 \mathrm {~B} ? 300
\end{array}$$ What are the variable costs per unit for A and B?
A) $4 and $15
B) $14 and $19
C) $7 and $14
D) $6 and $10

Question

Citrus Ltd. produces 2 products A and B, each requiring direct material and labour. Total labour available is 200 hours, and 300 pounds of material. Each unit of A sells for $10, and B sells for $15. Given the following linear programming information: $$\begin{array} { l l } 
\text { Maximise: } & \$ 4 \mathrm {~A} + \$ 5 \mathrm { Y } \
\text { Subject to: } & 3 \mathrm {~A} + 1 \mathrm {~B} ? 200 \
& 2 \mathrm {~A} + 2 \mathrm {~B} ? 300
\end{array}$$ What are the variable costs per unit for A and B?
A) $4 and $15
B) $14 and $19
C) $7 and $14
D) $6 and $10

Quizplus · Accepted Answer

The Answer of Citrus Ltd. produces 2 products A and B, each requiring direct material and labour. Total labour available is 200 hours, and 300 pounds of material. Each unit of A sells for $10, and B sells for $15. Given the following linear programming information: $$\begin{array} { l l } 
\text { Maximise: } & \$ 4 \mathrm {~A} + \$ 5 \mathrm { Y } \
\text { Subject to: } & 3 \mathrm {~A} + 1 \mathrm {~B} ? 200 \
& 2 \mathrm {~A} + 2 \mathrm {~B} ? 300
\end{array}$$ What are the variable costs per unit for A and B?
A) $4 and $15
B) $14 and $19
C) $7 and $14
D) $6 and $10

Citrus Ltd What Are the Variable Costs Per Unit for a and Direct