36. A bicycle component manufacturer produces hubs for bike wheels. Two processes are possible for manufacturing, and the parameters of each process are as follows:

Process 1 Process 2 Production rate 35 parts/hour 15 parts/hour Daily production time 4 hours/day 7 hours/day Percent of parts 20% 9%

rejected based on visual inspection Assume that the daily demand for hubs allows all defect-free hubs to be sold. Additionally, tested or rejected hubs cannot be sold.

Find the process that maximizes profit per day if each part is made from $4 worth of material and can be sold for $30. Both processes are fully automated, and variable overhead cost is charged at the rate of $40 per hour. (2.4)