CMA Intermediate · Operations Management and Strategic Management · Optimum Allocation of Resources - LPP
A firm maximises Z = 40x + 30y subject to x + y <= 8, x <= 5, and x, y >= 0. What is the maximum value of Z (in rupees)?
The maximum occurs at the corner point (5,3), where Z equals 40 times 5 plus 30 times 3, which is Rs 290. Other corners give lower values, so the optimum is at the intersection of x equals 5 and x plus y equals 8.
- ARs 260Correct
- BRs 240
- CRs 200
- DRs 320
Explanation
Corner points: (0,0)=0; (5,0)=200; (5,3)=200+90=290? Check: x=5, y=3 gives 40*5+30*3=200+90=290. (0,8)=240. So the maximum is 290, which is Rs 290 and not among the listed... recompute: the stated option Rs 260 is incorrect, so the key is not valid.
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