TW manufactures two products, the D and the E, using the same material for each. Annual demand for?the D is 9,000 units, while demand for the E is 12,000 units. The variable production cost per unit of the?D is $10, that of the E $15. The D requires 3.5 kg of raw material per unit, the E requires 8 kg of raw?material per unit. Supply of raw material will be limited to 87,500 kg during the year.?
A subcontractor has quoted prices of $17 per unit for the D and $25 per unit for the E to supply the?product. How many of each product should TW manufacture in order to maximise profits??
Required?
Fill in the blanks in the sentence below.?
TW should manufacture ........... units of D and .............. units of E to maximise profits.?