A company makes two products, A and B. A sells for $100 and B sells for $90. The variable production costs are $30 per unit for A and $25 for B. The company's objective could be written as: MAX 190x₁ − 55x₂.

Question

Quizplus · Accepted Answer

The objective function should maximize profit, which is revenue minus costs. The correct expression would be MAX (100x₁ - 30x₁) + (90x₂ - 25x₂), simplifying to MAX 70x₁ + 65x₂.

A Company Makes Two Products, a and B