Bexter Labs produces three products: A, B, and C. Bexter can sell up to 2000 units of product A, up to 3000 units of product B, and up to 5000 units of prod- uct C. Each unit of product C uses two units of A and three units of B and incurs $7 in processing costs. Prod- ucts A and B are produced from either raw material 1 or raw material 2. It costs $9 to purchase and process one unit of raw material 1. Each processed unit of raw mate- rial 1 yields two units of A and four units of B. It costs $5 to purchase and process a unit of raw material 2. Each processed unit of raw material 2 yields one unit of A and three units of B. The unit prices for the products are: A, $10; B, $9; and C, $32. The quality levels of each product are: A, 7; B, 9; and C, 6. The average quality level of the units sold must be at least 8. Deter- mine how to maximize Bexter’s profit.
Bexter Labs produces three products: A, B, and C.
Bexter can sell up to 2000 units of product A, up to
3000 units of product B, and up to 5000 units of prod-
uct C. Each unit of product C uses two units of A and
three units of B and incurs $7 in processing costs. Prod-
ucts A and B are produced from either raw material 1 or
raw material 2. It costs $9 to purchase and process one
unit of raw material 1. Each processed unit of raw mate-
rial 1 yields two units of A and four units of B. It costs
$5 to purchase and process a unit of raw material 2.
Each processed unit of raw material 2 yields one unit of
A and three units of B. The unit prices for the products
are: A, $10; B, $9; and C, $32. The quality levels of
each product are: A, 7; B, 9; and C, 6. The average
quality level of the units sold must be at least 8. Deter-
mine how to maximize Bexter’s profit.
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