Question

A tire manufacturer has 1000 units of raw rubber to use in producing radial tires for passenger cars and tractor tires. Each radial tire requires 5 units of rubber; each tractor tire requires 20 units. Labor costs are $80 for a radial tire and $120 for a tractor tire. Suppose the manufacturer does not wish to pay more than $15,000 in labor costs and wishes to make a profit of $100 per radial tire and $250 per tractor tire. How many of each kind of tire should be made in order to maximize profit

Answer 1

180 Passenger Car Tires and 5 Tractor Tires should be produced in order to maximize profit.

Explanation:

Here, we can form two equations from the given situation.

First, we are given that the total raw tube units are 1000. And 5 units are required for passenger car tire, while 20 units are required for tractor tire. So, the equation becomes:

5 x + 20 y = 1000 -------- eqn (1)

where,

x = no. of passenger car tires produced

y = no. of tractor tires produced

Another condition is given that, maximum labor cost should be $ 15,000. Since, the labor cost is $80 for a passenger tire and $120 for a tractor tie. Thus, the equation becomes:

80 x + 120 y = 15000 -------- eqn (2)

Solving eqn (1) and eqn (2), simultaneously, we get:

x = 180

y = 5

Therefore,

No. of Passenger Car Tires Produced = x = 180

No. of Tractor Tires Produced = y = 5