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I.

Define the variables Let x be the number of units of product A and y


be the number of units of product B.

II. Set the objective function: The objective is to maximize the profit.
The profit contribution of product A is $23 per unit and product B is $32
per unit. So, the objective function is:
P = 23x + 32y

Setup the constraints: The constraints are based on the available capacity
of machines X, Y, and Z.
 For Machine X: 10x + 6y ≤ 2500 Machine
 For machine Y: 5x + 10y ≤ 2000 and
 For Machine Z: 1x + 2y ≤ 500 in addition to the above constraints,
the number of units of product A and B cannot be negative: that
means for non-negativity condition need to be fulfilled.
x≥0y≥0
Solve the problem using the Simplex Method First, we need to convert
the inequalities into equality by introducing slack variables (s1, s2, and
s3).
10x + 6y + s1 = 2500
5x + 10y + s2 = 2000
1x + 2y + s3 = 500
Now, we can write the initial simplex tableau:

| 1 | 0 | 0 | 10 | 6 | 1 | 0 | 0 | 2500 | | 0 | 1 | 0 | 5 | 10 | 0 | 1 | 0 | 2000 | | 0 | 0
| 1 | 1 | 2 | 0 | 0 | 1 | 500 | | 0 | 0 | 0 | -23| -32| 0 | 0 | 0 | 0 |
Next, we perform the simplex iterations to find the optimal solution:
Iteration 1: Pivot element: 10 (row 2, column 4) New tableau:
| 1 | 0 | 0 | 0 | 2 | 1 | -2 | 0 | 1500 | | 0 | 1 | 0 | 1 | 2 | 0 | 0.2| 0 | 400 | | 0 | 0 | 1
| 0 | 0 | 0 | -0.2| 1 | 100 | | 0 | 0 | 0 | 0 | 14 | 0 | 4.6| 0 | 9200 | Iteration 2:
Pivot element: 14 (row 4, column 5) New tableau: | 1 | 0 | 0 | 0 | 0 | 1 | -3
| 0 | 1100 | | 0 | 1 | 0 | 1 | 0 | 0 | 0.6| 0 | 300 | | 0 | 0 | 1 | 0 | 0 | 0 | -0.2| 1 |
100 | | 0 | 0 | 0 | 0 | 1 | 0 | 0.33| 0 | 657.14 |
The tableau is now optimal, as there are no more negative values in the
bottom row (ignoring the slack variables).

Finally, Interpret the solution From the final tableau, we can read the
optimal solution:
x = 300 (units of product A)
y = 0 (units of product B)
P = $657.14 (maximum profit)
So, the optimal product mix for maximizing the profit is to produce 300
units of product A and no units of product B.
The maximum profit will be $6,571.40.

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