If cars sell for $500 profit and trucks sell for $300 profit which of the following represents the objective function?
A) Maximize = 500C+300T
B) Minimize = 500C + 300T
C) Maximize = 500C - 300T
D) Minimize = 300T- 500C
E) None of the above

Question

Quizplus · Accepted Answer

The objective is to maximize the profit, which is given by the formula Profit = Revenue - Cost. Here, the revenue will be the selling price of the cars/trucks, and the cost will be the cost price of the cars/trucks plus any additional expenses.

Let's assume that the cost price of a car is C and the cost price of a truck is T. Then, the revenue from selling a car will be C + 500 (profit). Similarly, the revenue from selling a truck will be T + 300 (profit).

Hence, the objective function will be:

Maximize = (C + 500) + (T + 300)
Maximize = 500C + 300T

Therefore, the correct choice is A.

If Cars Sell for $500 Profit and Trucks Sell for $300