Figure 25-3
Tiffany Manufacturing Company produces X and Y with contribution margins per unit of £10 and £90, respectively. Only 200 labour hours and 400 machine hours are available for production.
Time requirements to produce one unit of X and Y are as follows: $\begin{array}{cc}
&\text { Product A } & \text { Product B } \
\text { Labour hours per unit }&1&2 \
\text { Machine hours per unit }&5&1
\end{array}$
-Refer to Figure 25-3. What is the objective function to maximize profits for Tiffany Manufacturing Company?
A)Minimize 10X + 90Y
B)Maximize 1X + 2Y
C)Maximize 10X + 90Y
D)Minimize 1X + 2Y

Question

Quizplus · Accepted Answer

The objective function to maximize profits involves maximizing the total contribution margin, which is £10 per unit for X and £90 per unit for Y. Therefore, the objective function is to maximize 10X + 90Y, where X and Y represent the quantities of products X and Y, respectively.

Figure 25-3 Tiffany Manufacturing Company Produces X and Y with Contribution

Figure 25-3
Tiffany Manufacturing Company Produces X and Y with Contribution