Page 97 - P1 Integrated Workbook STUDENT 2018

Linear programming

36,000 + 180y = 52,500

180y = 16,500

y = 91

This is the optimal level of production (300 units of X and 91 units of Y).

This can be entered into the contribution formula to determine the maximum
level of contribution:

C = 270x + 310y

= (270 × 300) + (310 × 91) = $109,210

Illustrations and further practice

Now work through the illustration on Product X and Y from Chapter 7 and
Example 1.

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