Household appliances corp produces 3 products lamps, Ask an Expert

Management Studies

Household Appliances Corp produces 3 products: lamps, lightbulbs, and extension cords. Lamps take 6 minutes of labor to produce, lightbulbs take 3 minutes, and extension cords take 4 minutes. Lamps require 8 electric cables, lightbulbs require 2 cables, and extension cords require 8 cables to produce. Since lightbulbs are complementary goods to lamps, and lightbulbs tend to die way before the lamps, the company wishes to produce at least 4 times more lightbulbs than lamps. The company has a total of 1000 minutes of labor and 800 wires. The per unit profit for lamps is $4, lightbulbs is $0.50 and extension cords is $2. What is the maximum profit this corporation could achieve.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M93129086

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