Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 . A tech company produces two types of gadgets: SmartWatches and FitnessBands. They aim to maximize their weekly profit considering the availability of components

1. A tech company produces two types of gadgets: SmartWatches and FitnessBands. They aim to maximize their weekly profit considering the availability of components and production capacity. SmartWatch sells for a profit of $40 each, and FitnessBand for $20 each.
There are two key components in producing their gadgets: microchips and sensors. Each Smart- Watch requires 3 microchips and 2 sensors, while each FitnessBand requires 1 microchip and 3 sensors. The company has 400 microchips and 600 sensors available per week. Also, the company wants to ensure that at least 50% of the total gadgets are SmartWatches due to their popularity.
a. Formulate the problem as a linear program.
b. Solve the linear program from part (a) above using Excel. Specifically, find the optimal num- ber of each gadget type and the optimal profit of the tech company. Please, submit a screenshot of your Excel spreadsheet including the solver parameters, the answer report, and the sensitivity report.
c. If the profit from each SmartWatch increases to $50, will this affect the optimal number of SmartWatch? What is the new maximum profit?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Channel Strategies And Marketing Mix In A Connected World

Authors: Saibal Ray, Shuya Yin

1st Edition

3030317323, 978-3030317324

More Books

Students also viewed these General Management questions