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 should be MAX (100-30)x₁ + (90-25)x₂, which simplifies to MAX 70x₁ + 65x₂.

A Company Makes Two Products, a and B