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Household Appliances Corp produces 3 products: lamps, light bulbs, and extension cords.
Lamps take 6 minutes of labor to produce, lightbulbs take 3 minutes, and extension cords take 4 minutes. Lamps require 8 electric cables, lightbulbs require 2 cables, and extension cords require 8 cables to produce. Since light bulbs are complementary goods to lamps, and lightbulbs tend to die way before the lamps, the company wishes to produce at least 4 times more lightbulbs than lamps. The company has a total of 1000 minutes of labor and 800 wires. The per unit profit for lamps is $4, light bulbs are $0.50 and extension cords is $2.
What is the maximum profit this corporation could achieve? Optimal Solutions?
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