Question

QUESTION 38 The objective is to maximize A cost OB. profit ос. Х OD. X2 QUESTION 39 Applying the comer point method to solve this LP, we find for corner points. They are A(0,0), B(60,0), C(60,40), D(40,80), E(0,100). What would be the optimal solution? O A A(0,0) B. B(60,0) OC.C(60.40) D. none of the above

Answer 1

(Q 37). Answer: 2

Rationale: There are 2 decision variables in this linear programming and those are x1 and x2.

(Q 38). Answer: B (Profit)

Rationale: In a linear programming model or in any of the mathematical models, we always maximize profit and minimize the cost.

(Q 39). Answer: C (60, 40)

​​​​​​Rationale:

Corner Points	Profit = 50(x1) + 10(x2)
A (0, 0)	50 × 0 + 10 × 0 = $ 0
B (60, 0)	50 × 60 + 10 × 0 = $ 3,000
C (60, 40)	50 × 60 + 10 × 40 = $ 3,400
D (40, 80)	50 × 40 + 10 × 80 = $ 2,800
E (0, 100)	50 × 0 + 10 × 1000 = $ 1000

The maximum value of profit occurs at point C. Therefore, optimal solution is C (60, 40)

(Q 40). Answer: C ($ 3,400)

Rationale: As calculated above, the maximum value of Z occurs at point C. And the maximum value of profit is $ 3,400.