Determine the use of a linear programming application

Question

Assignment:

Note: This problem requires the use of a linear programming application such as Solver or Analytic Solver.

A bakery produces both pies and cakes. Both products use the same materials (flour, sugar and eggs) and both have a setup cost ($100 for cakes, $200 for pies). The baker earns a profit of $10 per cake and $12 per pie and can sell as many of each as it can produce. The daily supply of flour, sugar and eggs is limited. To manage the decision-making process, an analyst has formulated the following linear programming model (assume that it is possible to produce fractional pies and cakes for this example):

Max 10x₁ + 12x₂  100y₁ 200y₂

s.t. 5x₁ + 10x₂ ≤ 1000 {Constraint 1}

2x₁ + 5x₂ ≥ 2500 {Constraint 2}

2x₁ + 1x₂ ≤ 300 {Constraint 3}

My₁ ≥ x₁ {Constraint 4}

My₂ ≥ x₂ {Constraint 5}

yi={1, if product j is produced0, otherwise yi=1, if product j is produced 0, otherwise

Set up the problem in Excel and find the optimal solution. What is the optimal production schedule?

Multiple Choice

133â..." cakes, 33â..." pies

133â..." cakes, 0 pies

0 cakes, 33â..." pies

33â..." cakes, 133â..." pies

133â..." cakes, 133â..." pies