Linear programming. (J. Watson) Vulcan Ltd. produces and sells two products, the Spock @

and the Vorick:

Each unit of Spock requires 1.5 direct labour-hours and 2.0 machine-hours. The Vorick requires 3.0 direct labour-hours and 2.0 machine-hours per unit. Vulcan has a total of 30,000 direct labour-hours available and 25,000 machine-hours. The market for the products is unlimited within the volumes that the constraints will allow to be produced.
Vulcan currently has firm orders for 5,000 units of each product for the next period.
Last period, Vulcan produced 10,000 units of each product and had no under- or overapplied overhead.
REQUIRED Formulate and solve the linear programming problem required to determine the optimum production plan for next period. Calculate the total contribution margin assuming this optimum production plan.LO1

Transcribed Image Text:

Spock Vorick Selling price per unit $120 $200 Direct materials $ 30 $ 40 Direct labour $ 30 $ 60 Variable overhead $ 15 $ 25 Fixed overhead $ 15 $ 20