Product mix model with fixed costs

Resources used per unit of product produced

Product 1 Product 2 Product 3 Product 4 Product 5
Resource 1 2.7 2.9 2.4 2.5 2.6
Resource 2 2.1 2.8 2.6 2.6 2.1
Resource 3 2.9 2.3 2.3 2.1 2.0
Resource 4 2.7 2.8 2.2 2.6 2.0

Inputs on products
Unit revenue $25.10 $23.70 $25.50 $25.90 $26.90
Unit variable cost $16.10 $13.70 $16.20 $20.20 $20.20
Unit margin $9.00 $10.00 $9.30 $5.70 $6.70
Fixed cost $1,100 $1,500 $1,600 $1,100 $1,800
Maximum production 590 560 510 440 330

Decisions
Produce any?

Units produced
<= <= <= <= <=
Effective capacity

Constraints on resources
Used Available
Resource 1 <= 5000
Resource 2 <= 7000
Resource 3 <= 8000
Resource 4 <= 10000

Monetary outputs
Total revenue
Total variable cost
Total fixed cost
Total profit
Product 6 Product 7 Product 8
2.4 2.5 2.6
2.9 2.7 2.0
2.2 2.4 2.9
2.8 2.9 2.6

$22.90 $23.50 $24.50

$13.90 $14.10 $14.50
$9.00 $9.40 $10.00
$2,200 $1,400 $2,000
480 560 330

<= <= <=