Estimation of maximize profit

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Reference no: EM1347866

Abotte Products produces three products, A, B, and C. The company can sell up to 300 pounds of each product at the following prices (per pound): product A, $10; product B, $12; product C, $20. Abotte purchases raw material at $5 per pound. Each pound of raw material can be used to produce either one pound of A or one pound of B. For a cost of $3 per pound processed, product A can be converted to 0.6 pound of product B and 0.4 pound of product C. For a cost of $2 per pound processed product B can be converted to 0.8 pound of product C.

Determine how Abotte can maximize its profit.

确定要制作多少的A,重新加工到B和C中的A,B要制造多少,B可以重新加入多少B到C中。这将是4个变化的细胞。请记住,您的生产数量并不总是您必须出售的。如果我使200磅的A但重新加工更改50磅,那么我只会有150磅的售价(50次重新加入的50磅),但我要出售一些B和C。

Here are some check figures:

If I make 20 pounds of A and 20 pounds of B, I should use 40 pounds of raw material. Then if I convert half of each, I should have these quantities to sell:

Product A 10
Product B 16
Product C 12

The profit with this plan would be: $282

Hint: The optimal profit I got was: $6,975

Create a spreadsheet in excel. Run Solver to get the optimal result.

Reference no: EM1347866

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