Reference no: EM132988832

Questions -

Q1. Fuji Motorcycles can advertise its products on local radio and television (TV). The advertising budget is limited to 10,000 a month. Each minute of radio advertising costs 15 and each minute of TV commercials 300. Show & Sell likes to advertise on radio at least twice as much as on TV. In the meantime, it is not practical to use more than 400 minutes of radio advertising a month. From past experience, advertising on TV is estimated to be 25 times as effective as on radio. Determine the optimum allocation of the budget to radio and TV advertising. 

Q2. A furniture company manufactures desks and chairs. The sawing department cuts the lumber for both products, which is then sent to separate assembly departments. Assembled items are sent for finishing to the painting department. The daily capacity of the sawing department is 200 chairs or 80 desks. The chair assembly department can produce 120 chairs daily and the desk assembly department 60 desks daily. The paint department has a daily capacity of either 150 chairs or 110 desks. Given that the profit per chair is 50 and that of a desk is 100, determine the optimal production mix for the company.