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Copy 3

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userw512
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A company manufactures and sells two types of

products and the cost of production of each unit a


and b is rupees 200 and 150 respectively each unit
of product yields a profit of 20 rupees and each
unit of product b yields a profit of 15 rupees on
selling. The company estimates the monthly
demand of A and B to be at a maximum of the
harvested unit in all the production budget for
the month is set at rupees 50000. How many units
should the company manufacture to earn
maximum profit from its monthly sales from a
and b?
1.Define variables:
o Let x be the number of units of product A
manufactured.
o Let y be the number of units of product B
manufactured.
2.Profit per unit:
o Profit for A = 20 rupees/unit
o Profit for B = 15 rupees/unit
3.Production cost per unit:
o Cost of A = 200 rupees/unit
o Cost of B = 150 rupees/unit
4.Total profit function:
o Total profit = Profit from A + Profit from
B
o Total profit = 20x + 15y (in rupees)
5.Production budget constraint:
o The total cost of production shouldn't
exceed the monthly budget.
o Total cost = Cost of A * Units of A + Cost
of B * Units of B <= Budget
o 200x + 150y <= 50000 (in rupees)
6.Demand constraint (not applicable):
o The problem states that the demand is
high enough to sell all produced units.
This doesn't restrict production levels
mathematically, so we won't include it as
a constraint.
7.Maximize profit:
o We want to maximize the total profit
function (20x + 15y) subject to the budget
constraint (200x + 150y <= 50000).
This can be solved using various methods like
graphical representation or linear programming
techniques.
Here, we'll use a simple graphical approach to
find the optimal solution:
 Plot the budget constraint (200x + 150y =
50000) on a graph with x and y axes
representing the number of units produced
for A and B respectively.
 The feasible region will be the area below the
budget line where both x and y are non-
negative (positive or zero).
 Within this feasible region, higher x and y
values will lead to higher profits.
 The corner points of the feasible region are
the points where the budget line intersects the
axes or other lines representing additional
constraints (which we don't have in this case).
 Evaluate the profit function (20x + 15y) at
each corner point.
 The corner point with the highest profit value
will be the optimal production level for A and
B.

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