Page 238 - P1 Integrated Workbook STUDENT 2018
P. 238

Chapter 12










                  Example 2



                   Determine and state the objective function.

                   Solution


                   Firstly the contribution for each product needs to be determined:
                                                                           Computer  Computer
                                                                                X           Y
                                                                                $           $
                   Selling price per unit                                       800        1,200
                   Component costs per unit                                     150          310
                   Assembly costs                                               240          390
                   Testing costs                                                120          180
                   Packaging costs                                               20           10
                                                                             –––––        –––––
                   Contribution                                                 270          310
                                                                             –––––        –––––
                   The objective function:


                   Max C = 270x + 310y


































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