A company manufactures products A, B, C, D, & E. Contribution margin per unit for each product are 12, 18, 9, 11, and 4,

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A Company Manufactures Products A B C D E Contribution Margin Per Unit For Each Product Are 12 18 9 11 And 4 1 (66.55 KiB) Viewed 41 times

A company manufactures products A, B, C, D, & E. Contribution margin per unit for each product are 12, 18, 9, 11, and 4, respectively. Consumption rates of these Products for Raw Material 1 are 2, 3, 2, 2, and 1 while those for Raw Material 2 are 3, 5, 4, 3, and 3, also respectively. There are 1,000 units of Raw Material 1 and 2,000 units of Raw Material 2. Volume demands for products A, B, C, and D are 400, 500, 300, and 280 units while committed delivery for Product E is at least 200 units. Product A & B both undergo a special manufacturing Process A that has a gross capacity of 450 units (i.e. A & B Units put together). By the same token, Products C & D go through a Process B that has a gross capacity of 290 units. Formulate a product-mix LP model that will optimize contribution margin for the company