33. Swift Company manufactures two products (widgets and thingies), each of which must be processed on two different machines (Machine X and Machine Y). The machines run 8 hours per day. Production requirements are as follows:

Each widget sells for $100, and has direct materials costs of $20. Each thingie sells for $140, and has direct materials costs of $80. Currently, Swift manufactures 8 widgets and 26 thingies per day. Demand is 10 widgets and 28 thingies per day.
Swift is planning a huge marketing campaign for widgets next month, and anticipates that demand for widgets will double as a result.
Determine whether Swift is using its production capacity wisely, and if not, the optimum product mix given current production constraints and current demand. Then determine the optimum product mix if demand increases.

Transcribed Image Text:

Machine X Machine Y Widgets 10 minutes Thingies 15 minutes 20 minutes 10 minutes