Business Strategy A small software company publishes computer games, educational software, and utility software. Their business strategy is to market a total of 36 new programs each year, at least four of these being games. The number of utility programs published is never more than twice the number of educational programs. On average, the company makes an annual profit of $5000 on each computer game, $8000 on each educational program, and $6000 on each utility program. How many of each type of software should the company publish annually for maximum profit?
To find: The number of computer games, educational program and utility program should the company publish annually for maximum profit.
Answer to Problem 15P
The company publishes the 4 four computer games, 32 educational software and 0 utility programs to get the maximum profit.
Explanation of Solution
Given:
The business strategy of the company to launch the 36 new programs each year and at least four of being games.
The number of utility programs published is not more than twice the number of educational programs.
The company annual profit on each computer games is
Calculation:
Let the number of computer games published in a year is x and number of educational videos published in a year is y.
Then the number of utility program is
Use the given information to make the inequalities and the objective function for the feasible region.
The required information is shown in the table below.
Computer games | Educational programs | Utility programs | |
Number of games | x | y |
|
Profit |
|
|
|
The objective function is,
The constraint to get the feasible region has shown below.
The company makes at least 4 computer games.
The number of utility programs published is not more than twice the number of educational programs.
And,
And,
Now, take the equalities of the above inequalities,
And,
And,
Substitute
The intersection point is
Substitute
The intersection point is
Now, get the value of y in terms of x from the equation (3) to find the intersection points of equation (1) and (2),
Substitute
Further solve the above equation,
Substitute
The intersection point is
Now, draw the graph of the above equations,
Figure (1)
The vertices which lies in the feasible region is shown below.
Substitute the 36 for x and 0 for y in the objective function
Substitute the 4 for x and 32 for y in the objective function
Substitute the 4 for x and
Further solve the above equation,
So, point satisfies these vertices are shown in the table below.
Vertices |
|
| 180000 |
| 233333.33 |
| 276000(Maximum) |
The maximum interest rate is 276000 with the
Thus, a company made
Chapter 10 Solutions
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