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The Pansy Group has three divisions, X, Y and Z. Management want to increase overall production capacity per year by up to 12,000 hours. The minimum increase in any one division must be equal to 10% of its current capacity. The maximum funds available for the expansion programme are $1 million. In division X, the existing capacity is 10,000 hours, the investment cost per hour is $80 and the average contribution per hour is $78. In division Y, the existing capacity is 20,000 hours, the investment cost per hour is $150 and the average contribution per hour is $140. In division Z, the existing capacity is 50,000 hours, the investment cost per hour is $100 and the average contribution per hour is $200. A linear programme of the plan has been prepared to determine the strategy which will maximise additional contribution per annum. What are the constraints of that linear programme? A. 80X + 140Y + 100Z less than or equal to 1 million. B. X + Y + Z less than or equal to 12,000. C. Y less than or equal to 0. D. X is greater than or equal to 10,000. |