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Acme Products produces two products: C and D. Product C sells for $11/unit and D sells for $23/unit. A unit of C requires 2 hours on machine 1 and 1 unit of material E. A unit of D requires 2 hours on machine 2, 2 units of material E, and 1 unit of C. There are 1,300 hours available on machine 1, and 500 hours on machine 2. A unit of material E may be bought for $5, or produced (at no cost) using 2 hours on machine 1. Formulate an LP to maximize profits.
1. There should be 4 variables, one for product C, One for product D, one for E to be bought and one for E to be produced
2. The Price for D should be 23-11 =12 since D is using C for production.
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