Required: Determine The Number of Product A and Product B That The Company Should Manufacture To
Required: Determine The Number of Product A and Product B That The Company Should Manufacture To
Karina Company produces products A and B which contribute to profit per unit at P20 and P 15,
respectively. Product A is processed in machine X requiring 4 hours per unit and in machine Y requiring 3
hours per unit. Product B is processed only in machine Y using 4 hours per unit. Machine X and Y could
provide 4,000 hours and 4,800 hours respectively each year.
Product A and B passes the Polishing Department requiring 2 hours per unit each product before it is
considered a finished product. The polishing department has 2,600 hours available each year.
Required: Determine the number of product A and product B that the company should manufacture to
obtain the maximum profit using graphical method.
Constraint A
Inequality of Machine X: 4x+0y < 4,000
Convert to equality: 4x+0y = 4,000
Let y= 0
4x + 0(0) = 4,000
X = 1,000
The x intercept is therefore point (1,000,0)
Let x=0
4(0) + 0y = 4,000
Y=0
The y intercept is therefore point (0 , undefined)
Constraint B
Inequality of Machine Y: 3x+4y < 4,800
Convert to equality: 3x + 4y = 4,800
Let y= 0
3x + 4(0) = 4,800
X = 1,600
The x intercept is therefore point (1,600,0)
Let x=0
3(0) + 4y = 4,800
Y = 1,200
The y intercept is therefore point (0 , 1,200)
Constraint C
Inequality of Polishing: 2x+2y < 2,600
Convert to equality: 2x + 2y = 2,600
Let y= 0
2x + 2(0) = 2,600
X = 1,300
The x intercept is therefore point (1,300,0)
Let x=0
2(0) + 2y = 2,600
Y = 1,300
The y intercept is therefore point (0 , 1,300)
Let P= Profit
X = units of Product A
Y= units of Product B
By comparing the profits computed above, it is point ( 1,100, 1,150 ) that yield the highest (maximum)
profit.
Answer: Karina Company should produce 1,100 units of Product A and 1,150 units of product B
to obtain the maximum profit of P39,250.