Exam IIA-CIA-Part3 topic 1 question 46 discussion

This makes sense. Thank you

Even with option B (60 units of Y), the profit is $6080.

If the objective is to maximize profit, this formula gives only $5900 which is [(100 x 2 x 10) + (50 x 6 x 13)] whereas, if production meets a demand of 10 units of x and 80 units of y, the profit is $6440 which is [(10 x 2 x 10) + (80 x 6 x 13)]

Additionally, you can pretty much eliminate options C and D first because the material is limited to 500 kg per month for both products. The maximum unit of product Y per month is 500kg/6kg=83 units. Option A - the total profit is Product Y $350 + Product X $800 = $1,150 Product Y = 50 units x $7=$350 Remaining materials for Product X = 500kg - 50 units x 6kg = 200kg Product X = 200kg/2kg per unit = 100 units Product X profit = 100 units x $8 =$800 Option B - total profit is Product Y $420 + Product X $560 = $980 Product Y = 60 units x $7=$420 Remaining materials for Product X = 500kg - 60 units x 6kg = 140kg Product X = 140kg/2kg per unit = 70 units Product X profit = 70 units x $8 =$560