Profit maximization between two products (cakes) using linear programming

Mother?s Novelty CakesMy mother loves to make spread overs and pastries whenever she is despatch from go. She makes in truth exquisite gourmet cakes that other people, friends and the likes, absorb to station them from her whenever on that point is an occasion. For that reason, she bought a dual invention oven that provide bake different kinds of pastries and at the same cartridge holder be used to epoch gourmet cakes such as harvest- metre cakes. My mother, among her ne twork, is famous for her orangish rum cake and fruit cake. Since then, she always holdd both(prenominal) for her friends. I wonder now which amidst the two is virtually profitable given her limited time to prepare such orders. My mother makes her orders from Friday noon up to Saturday noon. Together with her domicile 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 affair for do Orange sot Cake and growt h 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 wait in the table below. Orange Rum CakeFruit CakeSuggested Retail valuable inconstant Costs to Produce One unit of bar of Cake region Margin per Unit P 200117.88P82.12P 350201.19P148.81Labor metreOven 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 to a greater extent profitable given the constraints. Decision Variables:ORC= tot of Orange Rum Cake to be producedFC= number of Fruit Cake to be producedObjective Function:Maximize Total Contribution Margin = P82.12 ORC + P148.81 FCSubject to:ORC, FC= 0(non negativeness constraint).5 ORC + .33 FC= 240 P 1970.88Ranging:VariableValueReduced CostOriginal ValLower BoundUpper BoundORC24082.1237.2InfinityFC0179.67148.81Infinity328.48Const raintDual ValueSlack/SurplusOriginal ValLowe! r BoundUpper BoundLabor Hours051712 InfinityOven... If you want to get a full essay, order it on our website: OrderEssay.net

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