Solved: Usine Ltd is a company whose objective is to

maximize
Usine Ltd is a company whose objective is to maximize

Usine Ltd is a company whose objective is to maximize profits. It manufactures two specialty
chemical powders, gamma and delta, using three processes: heating, refining and blending.
The powders can be produced and sold in infinitely divisible quantities.

The following are the estimated production hours for each process per kilo of output for each of
the two chemical powders during the period 1 June to 31 August:

During the same period, revenues and costs per kilo of output are budgeted as

It is anticipated that the company will be able to sell all it can produce at the above prices, and
that at any level of output fixed costs for the three month period will total £36 000.

The company's management accountant is under the impression that there will only be one
scarce factor during the budget period, namely blending hours, which cannot exceed a total of
1050 hours during the period 1 June to 31 August. He therefore correctly draws up an optimum
production plan on this basis.

However, when the factory manager sees the figures he points out that over the three-month
period there will not only be a restriction on blending hours, but in addition the heating and
refining hours cannot exceed 1200 and 450 respectively during the three month period.

Usine Ltd is a company whose objective is to maximize

ANSWER
https://solvedquest.com/usine-ltd-is-a-company-whose-objective-is-to-maximize/

Reach out to freelance2040@yahoo.com for enquiry.

Powered by TCPDF (www.tcpdf.org)