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  1. business
  2. accounting
  3. formulate a linear program that allows the company

Formulate a linear program that allows the company to maximize their profit. A company...

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Accounting

imageFormulate a linear program that allows the company to maximize their profit.

A company produces three products from raw material and the other products. Each pound of raw material undergoes processing and yields 3 ounces of product 1 and 1 ounce of product 2. Each pound of raw material costs $25 to purchase and takes 2 hours of labor to process. Each ounce of product 1 can be handled in one of three ways. First, it can be sold for $10 per ounce. Second, it can be processed into 32 ounces of product 2. This requires 2 hours of labor and costs and additional $1. Third, it can be processed into 21 ounces of product 3 . This requires 3 hours of labor and costs an additional $2. Each ounce of product 2 can be used in one of two ways. First, if can be sold for $20 per ounce. Second, it can be processed into 43 ounces of product 3 . This requires 1 hour of labor and costs $6 more. Product 3 is sold for $30 ounce. The maximum numbers of ounces of products 1,2 , and 3 that can be sold are, respectively, 5000,4000 , and 3000 . A maximum of 25,000 hours of labor are available

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