The way to maximize the profit of the company. Linear programming: It is a mathematical modeling procedure where a linear function is maximized or minimized subject to certain constraints. This method is widely useful in making a quantitative analysis which is essential for making important business decisions.

Question

A retail store sold in the month of April 5,000 products that produced $45,000 in sales. In the month of May the company sold 6,000 products. The store workforce consists of four full-time workers who work 40-hour week. In April the store also had seven part-time workers at 10 hours per week, and in May the store had nine part-timers at 15 hours per week (assume four weeks in each month). Using sales dollars as the measure of output (assume the price of the product was the same for both months), what is the percentage change in labor productivity from April to May? Answer: 2.

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Question

Chapter 4, Problem 64P

Summary Introduction

To determine: The way to maximize the profit of the company.

Linear programming:

It is a mathematical modeling procedure where a linear function is maximized or minimized subject to certain constraints. This method is widely useful in making a quantitative analysis which is essential for making important business decisions.

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A retail store sold in the month of April 5,000 products that produced $45,000 in sales. In the month of May the company sold 6,000 products. The store workforce consists of four full-time workers who work 40-hour week. In April the store also had seven part-time workers at 10 hours per week, and in May the store had nine part-timers at 15 hours per week (assume four weeks in each month). Using sales dollars as the measure of output (assume the price of the product was the same for both months), what is the percentage change in labor productivity from April to May? Answer: 2.

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