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  Answer:

  A. Decision Variables:

  Let a,b,c be the quantities of products A,B & C respectively that need to be produced.

  B. Optimization Function :

  Since data on per unit profit is available, the profit is to be MAXIMIZED, i.e:

  Maximize 2a-3b+5c

  C. Constraints:

  1. Constraints on demand:

  a <= 220 ( since company can't sell more than 220 units per day of product A)

  50 <= b <=250 (since daily demand of product B lies between 50 & 250 units per day )

  c >= 100 (since demand of product C is atleast 100 units per day)

  2. Constraints on process availability:

  100a+70b+50c <= 23400 (since process 1 is available only for 6.5 hours or 23400 seconds)

  160a+120c <= 26820 (since process 2 is available only for 7.45 hours or 26820 seconds)

  80a+70b+60c <= 28800 (since process 3 is available only for 8 hours or 28800 seconds)

  3. Constraints on raw material:

  0.7a+0.6b+0.9c <= 25 (since daily availability of raw material I is 25 kgs)

  0.8b+0.5c <=26 (since daily availability of raw material II is 26 kgs)

  4. Non negative constraints:

  Since only non-negative units can be produced,

  a,b,c>=0

  On solving the above constraints by using trial & error / graphical / Solver method in Microsoft Excel, we get optimum production quantity as:

  a=0 units

  b=50 units

  c=100 units

  Max. Profit = $350

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