Question 1.

A Tyre company plans to sell two versions of tyres (Tyre 1

and Tyre 2) at a price of $ 295 and $ 450 with a cost of $ 250 and $ 400
respectively. The maximum monthly demand for Tyre 1 is 200 units. The
minimum monthly demand for Tyre 2 is 100 units. The total cost of goods
should not exceed $ 70,000. What number of units produced and sold will
maximize contribution margin?
Question 2. A company makes two type of product A and B. Each piece of
product A requires 9 labor hours for fabricating and 1 labor hour for
finishing. Each piece of product B needs 12 labor hours for fabricating
and 3 labor hours for finishing. For fabricating and finishing, the maximum
labor hours available are: 180 and 30 respectively. The company makes a
profit of $ 8,000 on each piece of product A and $ 12,000 with B. How
many pieces of product A and B should be manufactured per week to
realize a maximum profit? What is the maximum profit per week?
Question 3. A firm is producing two models X 1 and X2 performing only
three operations assembling, painting and testing.The relevant data are as
follows. Total number of hours available each week for assemblling 600
hours, painting 100 hours and testing 30 hours.The firm wishes to
determine its weekly products mix so as to maximize revenue. How many
models X1 and X2 should firm produce?
Model Unit Sale Hours required for each unit
price Assembling Painting Testing
X1 $ 50 1.0 0.4 0.1
X2 $ 80 1.5 0.2 0.3

Question 4. SSC sells two snow ski models - Jordanelle & Deercrest
Manufacturing requires fabrication and finishing. The fabrication
department has 12 skilled workers, each of whom works 7 hours per day.
The finishing department has 3 workers, who also work a 7-hour shift.
Each pair of Jordanelle skis requires 3.5 labor-hours in the fabricating
department and 1 labor-hour in finishing. The Deercrest model requires 4
labor-hours in fabricating and 1.5 labor-hours in finishing. The number of
pairs of Deercrest skis must be at least twice the number of Jordanelle skis.
SSC makes a net profit of $50 on the Jordanelle model and $65 on the
Deercrest model. Determine how could SSC produce to maximize profit?
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