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A company manufactures two products, Product A and Product B. The wholesale price and manufacturing cost of each product are shown below.
Item
Price
Cost
Assembly Times (hr)
A
$30
$10
2
B
$45
$15
4
The company will produce a minimum of 5,000 of each item. Given the number of hours, the company can sell no more than 8,000 of Item A and 10,000 of Item B. Suppose the company has 50,000 hours of assembly time available. How many of each item should it produce in order to maximize profits while meeting all necessary constraints? Give the LP model and use the graphical method to find the optimal solution.
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