Tyke, Inc. produces 2 products A and B, each requiring direct material and labour. Total labour available is 200 hours, and 300 kilograms of material. Each unit of A sells for $10, and B sells for $15. Given the following linear programming information: Maximize: $4A + $5Y
Subject to: 3A + 1B ≤ 200
2A + 2B ≤ 300
What are the variable costs per unit for A and B?
A)$4 and $15
B)$14 and $19
C)$6 and $10
D)$7 and $14

Question

Quizplus · Accepted Answer

The objective function coefficients $4 and $5 represent the contribution margin per unit for products A and B, respectively. To find the variable costs, subtract these from the selling prices: $10 - $4 = $6 for A and $15 - $5 = $10 for B.

Tyke, Inc Produces 2 Products a and B, Each Requiring Direct