Set up the linear programming objective function

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Question: Johnsons Co. manufactures and sells two kinds of calculators, business and scientific. While both calculators sell for $200, the contribution margin is $80 for a business calculator and $60 for a scientific calculator. The business calculator requires one AA computer chip, while the scientific calculator requires one AAA chip. The two calculators are produced on the same production line that has a maximum capacity of 2,400 laborhours, but the business calculator takes twice as many labor hours as the scientific calculator. The AA chip costs $30, the AAA chip costs $80, and direct labor costs $10/hour. Each business calculator is charged $60 in directlabor. Both calculators are charged $3 for fixed factory overhead. Johnsons Co. can only acquire 200 AA chips and 600 AAA chips, but can sell all the calculators it produces.

Set up the linear programming objective function and constraints to optimize the production of business and scientific calculators, and determinethe optimal solution

Reference no: EM133424586

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