A small printing business is considering a product opportunity for some low-volume silk screen products. The new product line involves producing two products, a male version and a female version, and the decision is how many to produce of each, denoted Xm and Xf. Because the cost of maintaining the screen processing equipment goes up as more products are produced, unit contribution (contribution to profit) for each product is as follows:
Cm = $100-$4*Xm
Cf = $60-$3*XF
(Note: if 15 male units are produced, the contribution of each of the 15 units is $100-$4″15=$40.)
In addition, the business has decided that the will produce at most 20 of these units to keep down the fixed costs. The fixed costs of making these products is $250. Partial units are not permitted in the solution. Determine the amount of each of these two products to produce to maximize the profit from these two products creating an Excel solver model.
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