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Use Simplex LP in solver to solve the below:
A company makes a product in a basic form and a deluxe form, with costs of $40 and $100 per unit respectively. The per unit price for the Basic is $150 - 0.01*Xb where Xb is the number of Basics sold. Similarly, the per unit price for the deluxe is $250-0.015*Xd, where Xd is the number of units of Deluxe sold.
Because of the complexity of the producing the two products together in the same process, the company estimates that there is a complexity penalty cost of $0.01 times the number of Basics sold times the number of Deluxe sold.
Each Basic unit requires 10 minutes of assembly labor and each deluxe 20 minutes. The company has 1500 labor hours available.
Find Xb and Xd such that profit is maximized. Show the Solver screenshot on how you did it?
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