Question

A company makes cell phones in two different factories, one abroad and one more local. At the factory abroad it takes 30 hours to produce the cellphone and at the local factory it takes 20 hours. The costs of producing these cell phones are $20 each at the factory abroad and $60 each at the local factory. The company's total labor force can provide 6000 hours of labor each week and total resources are $12,000 each week. How many cell phones should the company make at each factory to maximize the amount of phones produced?

Answer 1

The answer is below

Explanation:

Let x represent the number of phones produced abroad and y represent the number of phones produced locally.

The company can provide 6000 hours of labor each week and it takes 30 hours to produce the cellphone abroad and at the local factory it takes 20 hours, hence:

30x + 20y = 6000 (1)

Also, there is a total resource of $12000 each week, the cost of producing abroad is $20 and the cost of producing locally is $60. Hence:

20x + 60y = 12000 (2)

Multiply equation 1 by 3 and subtract equation 2 from the result. This gives:

70x = 6000

x = 600/7 ≈ 86

Put x = 86 in equation 1:

30(86) + 20 y = 6000

20y = 3420

y = 171

86 phones should be produced abroad and 171 phones locally