Works manufactures a model locomotive

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Reference no: EM131632693

John's Locomotive Works manufactures a model locomotive. It comes in two versions--a standard (S), and a deluxe (D). The standard version locomotive (S) generates $150 profit per unit. The deluxe version locomotive (D) generates $450 profit per unit.

One constraint on John's production is labor hours. He only has 40 hours per week of available labor. The standard version requires 8 hours per unit, while the deluxe version requires 4 hours per unit.

John's milling machine is also a constraint. There are only 60 hours a week available for the milling machine. The standard version requires 1 hour per unit, while the deluxe version requires 2 hours per unit.

Assume (S,D >= 0). John's goal is to maximize profit.

Refer to Scenario 3. For the production quantities of 0 standard locomotives (S) and 10 deluxe locomotives (D), what is the profit?

$3000

$4500

$6000

$3500

Reference no: EM131632693

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