The National Business Machines Corporation manufactures two models of fax Machines: A and B. Each model A costs $200 to make, and each model B costs $300. The profits are $25 for each model A and $40 for each model B fax machine. The total number of fax machines demanded per month does not exceed 2500.
The company has earmarked no more than $600,000 per month for manufacturing costs. Calculate the number of units of each model that should be produced to maximize the monthly profits.
Consider the following Linear Programming Problem (LPP):
Maximize Z = 3X1 + 5X2
Subject to,
X1 - X2 ≤ 6
X1 ≤ 10
X2 ≥ 1
X1, X2 ≥ 0
Find the basic feasible solution and the optimal solution for above Linear Programming
Problem using Two-Phase method. Also interpret the solution