Economics

3. (i) Sleak Teak builds yard furniture using hardwoods and (in a smaller shop)
handcrafted knick-knacks from the same sort of wood. The hardwood
usage in the two lines of product are
Yard Furniture: Y = 2 Ty - .001Ty2
Knick-knacks: Z = 20Tz - .01 Tz
2
where Y and Z are units of furniture and knick-knacks respectively. Ty and
Tz are the amounts of hardwood used in Y and Z production respectively.
Yard furniture can be sold at a profit (i.e., net of costs) of $100 per unit and
knick-knacks can be sold at a profit of $25 per unit. Sleak Teak has 1300
units of hardwood available that can be allocated between these two lines
of production.
(a) Using the Lagrangean Multiplier method, determine how should the
hardwood be allocated between the two lines of product so that total
profit can be maximized. Also calculate the optimal amounts of Y
and Z and total profit from each product line.

(b) Using Excel Solver verify your answers to (a) above.
(Show your work.)

  1. 👍 0
  2. 👎 0
  3. 👁 34

Respond to this Question

First Name

Your Response

Similar Questions

  1. Socials

    What does Serial format mean? It means--in weekly of monthly installments. What is Whist? It is a card game for four players divided into two teams. What are knick-knacks? What does Spirit-Power mean?

    asked by Sara on March 3, 2011
  2. Business Math - Please Help is Possible!

    Import exclusives Ltd. received an invoice dated June 28 from Dansk Specialties of Copenhagen with terms 5/20, n/45: 100 teak trays at $34.30 each; 25 teak ice buckets at $63.60 each; 40 teak salad bowls at $54.50 each. All items

    asked by Steph on October 10, 2012
  3. Business Math

    Import exclusives Ltd. received an invoice dated June 28 from Dansk Specialties of Copenhagen with terms 5/20, n/45: 100 teak trays at $34.30 each; 25 teak ice buckets at $63.60 each; 40 teak salad bowls at $54.50 each. All items

    asked by Steph on October 9, 2012
  4. Math

    John has 1/4 yard of fabric. He cuts it into 3 equal pieces . What fraction of a yard is each piece of fabric? Choices are A. 1/12 yard B, 1/8 yard C. 1/2 yard D. 3/4 yard please help answer

    asked by Dani on May 15, 2014
  5. business finance

    please point me in the right direction to begin. Thanks! Your small business needs to buy new office furniture for your new headquarters. You have the option of leasing the furniture, or buying the furniture. You can purchase the

    asked by Tasha on September 15, 2014
  6. business finance

    I am in need of some major help. Your small business needs to buy new office furniture for your new headquarters. You have the option of leasing the furniture, or buying the furniture. You can purchase the furniture for $15,000

    asked by Tasha on September 15, 2014
  7. Algebra B (probability)

    I just don't understand how to do this... A kidney-shaped swimming pool is located in a rectangular back yard. The sides of the pool consist of four connecting semicircles. A parachutist is hired to land in the back yard during a

    asked by Arika =] on January 26, 2009
  8. geometry

    a man builds a teepee in his back yard. the width of the teepee is 12ft. The height of the teepee is 8 feet. How long is the length of the pipes?

    asked by Joann Paynter on November 28, 2010
  9. LA

    Which sentence uses a verb in the present tense? A. My flight arrived in Denver at midnight. B. Nathan will make lunch for us today. C. My sister builds obstacle courses in our yard. *** D. The Smiths' dog ran around the picnic

    asked by Ace on December 6, 2018
  10. English

    An agreement could be when you go to a furniture store like Ashley’s, and they have many sales going on, for example no interest until March 2017 but, payments have to be made in time, and furniture has to be paid before March

    asked by antonio on January 28, 2015

More Similar Questions