Chapter 3, Problem 21RP

Explanation of Solution

Linear Programming (LP) to maximize revenues:

• Assume the following,
  • Let “${\text{P}}_{\text{A}}$” be the price of product “A”.
  • Let “${\text{P}}_{\text{B}}$” be the price of product “B”.
• The objective function to maximize revenues is as follows,

  $\text{Maximize}{\text{z=1000P}}_{\text{A}}+1500{\text{P}}_{\text{B}}$

• The above function subject to the following constraints,
  • “$8-{\text{P}}_{\text{B}}\le 10-{\text{P}}_{\text{A}}$” denotes the constraint to purchase product “A”