Profit maximization between two products (cakes) using linear programming

Mother?s Novelty CakesMy mother loves to make streaks and pastries whenever she is clear up from go. She makes in truth exquisite gourmet cakes that other people, friends and the likes, take in to ramble them from her whenever on that point is an occasion. For that reason, she bought a dual design oven that provide bake different kinds of pastries and at the same fourth dimension be used to epoch gourmet cakes such as return cakes. My mother, among her ne 2rk, is famous for her orangish rum cake and fruit cake. Since then, she always erectd both(prenominal) for her friends. I wonder now which amidst the two is virtually profitable given her limited measure to prepare such orders. My mother makes her orders from Friday noon up to Saturday noon. Together with her fellowship help, they work from Friday noon until midnight and start again 7 in the dawn the following day up to noon time. Ingredients, costing, and cognitive process for do Orange singular Cake and growth cake can be seen in Annex A and B. The time requirements for apiece of the two cakes, their suggested selling prices, their variable costs, and their contribution margins fall out in the table below. Orange Rum CakeFruit CakeSuggested Retail invaluable inconstant Costs to Produce One unit of mensuration of Cake region Margin per Unit P 200117.88P82.12P 350201.19P148.81Labor eonOven Time (baking and aging).5 hour per unit1 hour per unit.

33 hour per unit4 hours per unitUsing running(a) Programming formulation, I can now know which between the two cakes is more profitable given the constraints. Decision Variables:ORC= tot of Orange Rum Cake to be producedFC= number of Fruit Ca ke to be producedObjective Function:Maximize! Total Contribution Margin = P82.12 ORC + P148.81 FCSubject to:ORC, FC= 0(non negativity constraint).5 ORC + .33 FC= 240 P 1970.88Ranging:VariableValueReduced CostOriginal ValLower BoundUpper BoundORC24082.1237.2InfinityFC0179.67148.81Infinity328.48ConstraintDual ValueSlack/SurplusOriginal ValLower BoundUpper BoundLabor Hours051712 InfinityOven... If you want to get a full essay, order it on our website: OrderEssay.net

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