Quantitate methods in accounting (Dr. Mohamed srour).

Assignment:
Problem (2): Price discrimination problem: -
A2Z manufacturing firm produce 3 products A, B, and C in two departments G and
H. The following data are used :
Requirement / unit (DLH) Capacity
Product (A) Product (B) Product (C) ( DLH)
Department (G) 4 5 3 5,000
Department (H) 2 1 4 7,000
marketing capacity
units 17000 4000 1200
variable cost/unit $40 $50 $30
unit selling price $70 $75 ?
# Additional information:
(1) Assume the price of product (C) is determined as a function of quantity of sales as
follows :
Quantity (units) Price
1: 400 $50
401: 700 $45
701 : 1,200 $40
(2) There are orders on hand ,for 500 units of product (A), 600 units of product (B), and
900 units of product (C) .
(3) Product (A) and (B) are usually ordered in groups, at least 3 units of (A), ordered
for 2 units of (B), wanting enough units of (B).
(4) Product (C) can't exceed 25% of the combined total of all products.
# Required:

 Formulate this problem as a linear programming model to maximize profit.