Therefore, to maximize profit under this additional constraint, the Kane Manufacturing Company should produce:
Model A Model B
Units of products 150 100
A constraint is a factor that hinders production.
A constraint can stop a company from producing the maximum units of each product model.
Constraints can emanate from the availability and quantity of the throughput, operational expense, and inventory.
Model A Model B Total Resources
Cast iron required 3 lb 4 lb 1,000 lb
Direct labor 6 min 3 min 20 labor-hours (1,200 min)
Profit per model $4.00 $4.000
Constraint:
Production of 150 of Model A, which consumes 900 minutes
This leaves 300 minutes for Model B.
300 minutes can produce 100 units of Model B (300/3).
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