Bexter Labs produces three products: A, B, and C. Bexter can sell up to 30 units of product A, up to 20 units of product B, and up to 20 units of product C. Each unit of product C uses 2 units of A and 3 units of B and incurs $5 in processing costs. Products A and B are produced from either raw material 1 or raw material 2. It costs $6 to purchase and process 1 unit of raw material 1. Each processed unit of raw material 1 yields 2 units of A and 3 units of B. It costs $3 to purchase and process a unit of raw material 2. Each processed unit of raw material 2 yields 1 unit of A and 2 units of B. The unit prices for the products are: A, $5; B,$4; C, $25. The quality levels of each product are: A, 8; B, 7; C, 6. The average quality level of the units sold must be at least 7. Determine how to maximize Bexter’s profit.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter4: Linear Programming Models
Section: Chapter Questions
Problem 93P
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Bexter Labs produces three products: A, B, and C. Bexter can sell up to 30 units of product A, up to 20 units of product B, and up to 20 units of product C. Each unit of product C uses 2 units of A and 3 units of B and incurs $5 in processing costs. Products A and B are produced from either raw material 1 or raw material 2. It costs $6 to purchase and process 1 unit of raw material 1. Each processed unit of raw material 1 yields 2 units of A and 3 units of B. It costs $3 to purchase and process a unit of raw material 2. Each processed unit of raw material 2 yields 1 unit of A and 2 units of B. The unit prices for the products are: A, $5; B,
$4; C, $25. The quality levels of each product are: A, 8; B, 7; C, 6. The average quality level of the units sold must be at least 7. Determine how to maximize Bexter’s profit.

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