Horton Company produces two products, a regular chair and a deluxe chair. The following exhibit lists the standard selling prices and manufacturing costs for the two products:
Regular
Deluxe
Selling price
$300
$450
Costs
Direct materials
$100
$150
Direct labour
80
125
Variable manufacturing overhead
20
30
Fixed manufacturing overhead
25
225
45
350
Chair profit
$75
$100
The chairs each pass through three departments:
1. Preparation, where the pieces of wood that will form the chairs are cut and drilled
2. Assembly, where the pieces of wood are fastened together to form the chairs, and
3. Finishing, where the chairs are sanded and a finish applied.
The following table lists the hours each chair requires of each for the resources and the maximum hours available for each resource.
Regular
Deluxe
Selling price
$300
$450
Costs
Direct materials
$100
$150
Required:
Write the objective function and the constraints for the linear program assuming Horton
Company wants to choose the production mix that maximizes short-term profits.
