# A manufacturer can sell product 1 at a profit of $2 per unit and product 2 at a profit of $5 per…

A manufacturer can sell product 1 at a profit of $2 per unit

and product 2 at a profit of $5 per unit. Three units of raw material are

needed to manufacture 1 unit of product 1, and 6 units of raw material are

needed to manufacture 1 unit of product 2. A total of 120 units of raw material

are available. If any product 1 is produced, a setup cost of $10 is incurred;

if any product 2 is produced, a setup cost of $20 is incurred.

a. Determine how to maximize the manufacturers profit.

b. Use SolverTable to analyze how a change in the setup cost

for product 1 affects the optimal solution.

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A manufacturer can sell product 1 at a profit of $2 per unit

and product 2 at a profit of $5 per unit. Three units of raw material are

needed to manufacture 1 unit of product 1, and 6 units of raw material are

needed to manufacture 1 unit of product 2. A total of 120 units of raw material

are available. If any product 1 is produced, a setup cost of $10 is incurred;

if any product 2 is produced, a setup cost of $20 is incurred.

a. Determine how to maximize the manufacturers profit.

b. Use SolverTable to analyze how a change in the setup cost

for product 1 affects the optimal solution. Do the same for the setup cost for

product 2.

»