(Solved by Humans)-Zanbrow Company produces two products that use the same material input. Product A uses two pounds...

Question

Zanbrow Company produces two products that use the same material input. Product A uses two pounds of the material for every unit produced, and Product B uses five pounds. Currently, Zanbrow has 6,000 pounds of the material in inventory and will not be able to obtain more for the coming year. The maximum demand (sales) for A is estimated at 1,000 units, and for B it is estimated at 2,000 units. The detail of each product’s unit contribution margin follows:                                                  Product A             Product B   Selling price $81 $139 Less variable expenses:     Direct materials (20) (50) Direct labor (21) (14) Variable overhead  (10)  (15) Contribution margin $30 $60 Assume that Product A uses three direct labor hours for every unit produced and that Product B uses two hours. A total of 6,000 direct labor hours is available for the coming year.   Required 1.    Formulate the linear programming problem faced by Zanbrow Company. To do so, you must derive mathematical expressions for the objective function and for the material and labor constraints. 2.    Solve the linear programming problem using the graphical approach. 3.    Compute the total contribution margin produced by the optimal mix developed in Requirement 2.