Profit needs to be maximized.
Profit = 30x+45y where x and y are respectively the number of model A and model B fax machines manufactured.
Objective function:
max(30x+45y)
Constraints:
x≥0 ---------------(1)
y≥0 ---------------(2)
x+y ≤ 2500 since the demand is capped at 2500 -----------(3)
100x+150y≤600000 since manufacturing costs cannot exceed $600000-----(4)
Solve the following two equations to identify where the two boundary lines (3) and (4) intersect.
x+y=2500-----(3)
100x+150y=600000---(4)
Multiplying (3) by 100
100x+100y=250000----(5)
(5)-(4)
50y=350000
y=7000
x=-4500
since the constraint states that x≥0, only three vertices are considered viz (0,0), (0,2500),(2500,0).
applying the profit function at each of the three vertices:
(0,0) ----- 30(0)+45(0) = 0
(0,2500) ---- 30(0)+45(2500)=112500
(2500,0) ---- 30(2500)+45(0)=75000
Hence by applying the max function, x=0, y=2500.
i.e. Dont produce any 'a' model machine. Manufacture 2500 units of model 'b' to maximise profit