Explain consultation with the managers of the two lines

Reference no: EM13186467

Sleak Teak builds yard furniture using domestic hardwoods and (in a smaller shop) knick-knacks form the same sort of wood. Although hardwoods were readily available in the past, recently they have become harder to obtain. Consultation with the managers of the two lines has resulted in the following production functions for hardwood usage in the two products:

Yard furniture: Y = 2*Ty - 0.001 * Ty2

Knick-knack: K = 20*Tk - 0.01 Tk2

Where Y = units of furniture, K = units of knick-knacks, Ty = teak used in yard furniture, and Tk = teak used in knick-knacks. Yard furniture can be sold at a profit of $100 per unit and knick-knacks can be sold at a profit of $ 25 per unit. Sleak teak has 1,300 units of teak available. How should it allocate production? Explain.

Reference no: EM13186467

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