The Golden Wheels Trailer Company recorded the following information for two of their trailers: $\begin{array}{lcc}&\text { Trailer A } &\text { Trailer B }\
\text { Processing time } & 3 \text { hours } & 5 \text { hours } \
\text { Vinyl cover used } & 17 \text { sq. ft. } & 13 \mathrm{sq} . \mathrm{ft} \
\text { Selling price } & \$ 60.00 & \$ 90.00 \
\text { Variable cost } & \$ 45.00 & \$ 60.00 \
\text { Fixed cost } & \$ 20.00 & \$ 30.00
\end{array}$
There are 100 hours available in the plant and 75 square feet of vinyl available per operating period.
What is the objective function for maximizing profits?
A)Minimize $15A + $30B
B)Maximize $60A + $90B
C)Maximize $45A + $60B
D)Maximize $15A + $30B

Question

Quizplus · Accepted Answer

The objective function for maximizing profits is the total profit from both trailers, which is the selling price minus the variable cost for each trailer. For Trailer A, the profit per unit is $60 - $45 = $15. For Trailer B, the profit per unit is $90 - $60 = $30. Therefore, the objective function is to maximize $15A + $30B, where A and B are the numbers of Trailer A and Trailer B produced, respectively. Fixed costs are not included in the calculation of the objective function for maximizing profits because they do not change with the number of units produced.

The Golden Wheels Trailer Company Recorded the Following Information for Two