Preview

Lm/300 Week 4

Satisfactory Essays
Open Document
Open Document
672 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Lm/300 Week 4
Chapter 3, Problem 8
Information from problem 7.
Formulate LPM to determine the number of basketballs and footballs to produce in order to maximize profit.
X1 -- # of basketballs
X2 -- # of footballs
Maximize Z = 12x1 + 16x2
Subject to: 3x1 + 2x2 ≤ 500 4x1 + 5x2 ≤ 800 X1, x2 ≥ 0
Transform this model to standard form.
Maximize Z = 12x1 + 16x2 + 0s1 +0s2 3x1 + 2x2 + s1 = 500 4x1 +5x2 + x2 = 800 X1, x2, s1, s2 ≥ 0
a). Identify the amount of unused resources (slack) at each of the graphical points.
3x1 + 2x2= 500 4x1 + 5x2 = 800
X1 = 0, x2 = 250 X1 = 0, x2 = 160
X2 = 0, x1 = 500/3 X2 = 0, x1 = 200
Maximize Z = 12x1 + 16x2
At point A (0, 0) Z = 0
At point B (500/3, 0) Z = 12(500/3) + 16(0) Z = 2000
At point D (0,
…show more content…

What would be effect on the optimal solution if the profit for a basketball changed from $12 to $13?
Z = 12x1 + 16x2 becomes Z = 13x1 + 16x2
At point D (0, 160) Z = 2560
At point B (500/3, 0) Z = 2166.67
At point C (900/7, 400/7) Z = 2585.71
Point C would become an optimal solution if profit for basketballs changed from $12 to $13.

What would be the effect if the profit for a football changed from $16 to $15?
Z = 12x1 + 16x2 becomes Z = 12x1 + 15x2
At point D (0, 160) Z = 2400
At point B (500/3, 0) Z = 2000
At point C (900/7, 400/7) Z = 2400
Either point D or C would be an optimal solution if profit for football changed from $16 to $15.

c) What would be the effect on the optimal solution if 500 additional pounds of rubber could be obtained?
3x1 + 2x2= 500 becomes 3x1 + 2x2= 1000
3x1 + 2x2= 1000
X1 = 0, x2 = 500
X2 = 0, x1 = 1000/3

4x1 + 5x2 = 800
X1 = 0, x2 = 160
X2 = 0, x1 = 200
Maximize Z = 12x1 +16x2
A (0,0) Z = 0
D (0,160) Z = 2560
B (200,0) Z = 2400
Point D is an optimal solution.

What would be the effect if 500 additional square feet of leather could be obtained?
4x1 + 5x2 = 800 becomes 4x1 + 5x2 = 1300
4x1 + 5x2 = 1300
X1 = 0, x2 =


You May Also Find These Documents Helpful

  • Satisfactory Essays

    WGU EGT1 Task 1

    • 746 Words
    • 3 Pages

    As you can see in the highlighted section above at 8 units produced Company A achieves profit maximization because at any point after that additional units produced causes a decline in profit. The second approach to profit maximization through total revenue and total cost is graphically. A graph is provided below to illustrate.…

    • 746 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    c. What would be the firm’s profit or loss at the following units of production sold: 12,000 units? 15,000 units? 20,000 units?…

    • 687 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Pt1420 Unit 4

    • 4123 Words
    • 17 Pages

    A minimization problem with four decision variables, two greater-than-or-equal-to constraints, and one equality constraint will have…

    • 4123 Words
    • 17 Pages
    Satisfactory Essays
  • Good Essays

    Egt1, Task1

    • 432 Words
    • 2 Pages

    A. The point or number of units produced at which profit maximization or greatest economic profit is achieved can be determined in 2 ways.…

    • 432 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    b. According to the profit-maximizing rule, MR = MC, the total highest profit in the short run is at 40 units of output.…

    • 3065 Words
    • 14 Pages
    Powerful Essays
  • Satisfactory Essays

    Compute the break-even point in sales dollars under each approach. Discuss the implications of your findings.…

    • 673 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    CS159 HW1

    • 319 Words
    • 2 Pages

    DO NOT use any material found outside of the first THREE chapters of the C text.…

    • 319 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Week 4 Mgmt 310

    • 296 Words
    • 2 Pages

    C) Gain/Loss- CSUSA plans for a 5 %net gain in new agreements every year and a 1% loss of business.…

    • 296 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    As shown in the Excel Worksheet (Question #1), the best course of action following a competitors price decrease is to not change prices. I reduction in price by 10% leads to a subsequent reduction in Margins by 25%, but this is only offset by an increase in sales of 20%. As a result, holding prices constant sees a Total Margin of 32,000,000 which is preferable to the 30,000,000 Total Margin that a price reduction would see.…

    • 787 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Brs Mdm3 Tif Ch08

    • 3288 Words
    • 19 Pages

    5) Refer to the payoff table. Using the maximax criterion, what would be the highest expected payoff?…

    • 3288 Words
    • 19 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Mat 540 Assignment 3

    • 293 Words
    • 2 Pages

    Based on the LP model to maximize profit with the established constraints Julia should sell pizza and hotdogs and not BBQ sandwiches. Based on this model Julia will earn $2250.00 in profit. After buying food supplies for the next game she will have $750 remaining ($2250-1500). Julia’s goal was to clear $1000 in profit which she was not able to meet. It is not clear how Julia is paying for the booth rental each game, but assuming she is covering the costs with her profits from the prior game she will need $1000 for the booth + $1500 for food which equals $2500 she needs to make each game just to cover her expenses.…

    • 293 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Optimistic Decision Maker

    • 325 Words
    • 2 Pages

    Sub 100, which is listed in the first row of the table has a profit of 300,000 which is the highest increase in profit listed within the table. Therefore, Ken’s decision should be to choose the sub 100 to maximize profit.…

    • 325 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Then, the company conducted three different scenarios of altering the product pricing mix in order to determine their impacts to Total Gross Profit. The First Scenario was to see the impact of raising Product B’s price by $6.00. Even though this caused sales of Product B to fall by 600 units and sales of Product C to increase by 500 units, this was very profitable. The…

    • 532 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Managerial Economics

    • 484 Words
    • 2 Pages

    Week 1 Chapter 1: The Fundamentals of Managerial EconomicsFor this week read Chapter 1 and the Headline: Amcott Loses $3.5 Million: Manager Fired.Answer the following questions:Question 1. Page 27Levi Strauss & Co. paid $46,532 for a 110-year-old pair of Levi’s jeans-the oldest known pair of blue jeans-by outbidding several other bidders in an eBay Internet auction. Does this situation best represent: a) Producer-producer rivalry? b) Consumer-consumer rivalry? c) Producer-consumer rivalry?This scenario can best be represented by Consumer-consumer rivalry in such; Levi Strauss & Co was willing to pay the highest price for the scarce good which was the antique blue jean by outbidding other consumer.Top of Form d) Bottom of FormQuestion 2. Page 27What is the maximum amount you would pay for an asset that generates an income of $150,000 at the end of five years of the opportunity cost of using funds is 9 percent?PV=150,000 + 150,000 + 150,000 + 150,000 + 150,000 1 + 0.09 (1 + 0.09)2 (1 + 0.09)3 (1 + 0.09)4 (1 + 0.09)5= $583,447.69 e) What are her accounting profits? Show your work f) What are her economic profits? Show your work!Question 21. Page 32 Brazil points to its shrimp-farming industry as an example of how it can export shrimp in the world market. One decade ago, Brazil exported a meager 400 tons of shrimp. Today, Brazil exports more than 58,000 tons of shrimp, with approximately one-third of that going to the United States. Brazilian shrimp farmers however, potentially face a new challenge in the upcoming years. The Southern Shrimp Alliance- a U.S. organization representing shrimps-producing countries is selling shrimp below “fair market value.” The organization is calling for the United…

    • 484 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Reep Construction no layoffs and commitment to long term lease = $2000 monthly fuel cost…

    • 438 Words
    • 4 Pages
    Powerful Essays

Related Topics