National Business Machines manufactures x model A fax machines and y model B fax machines. Each model A costs $100 to make, and each model B costs $150. The profits are $45 for each model A and $50 for each model B fax machine. If the total number of fax machines demanded per month does not exceed 2500 and the company has earmarked no more than $600,000/month for manufacturing costs, how many units of each model should National make each month to maximize its monthly profit? (x,y): what is the optimal profit?

lamontalbanav6

lamontalbanav6

Answered question

2022-09-01

National Business Machines manufactures x model A fax machines and y model B fax machines. Each model A costs $100 to make, and each model B costs $150. The profits are $45 for each model A and $50 for each model B fax machine. If the total number of fax machines demanded per month does not exceed 2500 and the company has earmarked no more than $600,000/month for manufacturing costs, how many units of each model should National make each month to maximize its monthly profit?
(x,y):
what is the optimal profit?

Answer & Explanation

Alison Mcgrath

Alison Mcgrath

Beginner2022-09-02Added 9 answers

Production is limited at 2500 per month.
Notice that 150*2500 = 375000, so even if we make all B, we still cannot reach the limit spending of 600000.
Thus, the relationship between x and y is always:
y=2500 - x
Profit is given by:
P = 45x + 50y
Replacing y by 2500-x gives us:
P = 45x + 50(2500 - x)
P = 45x + 125000 - 50x
P = 125000 - 5x
This is linear, so the maximum must occur at the end-point:
Either at x=0 or x=2500
From the equation for P, we can see that the maximum occurs at x=0.
Since y=2500 - x, y=2500
(0,2500)
And P = 125000 - 5(0) = 125000

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