1. Solve the following problem to find the maximum profit by creating a spreadsheet and using Solver.

A company is making Sofas and Love Seats. The sofas profit is $1,000 and the love seats profit is $950.

There are 2 factories available to make the products.

Factory 1 requires 55 hours to make a sofa and 40 hours to make a love seat. It has 6,000 hours available.

Factory 2 requires 50 hours to make a sofa and 45 hours to make a love seat. It has 4,000 hours available.

Case Review (answer on a Word document)

Company guidelines state that a project should not move forward if profit is less than $125,000.

Based on the results of your excel calculations, should you go forward with this project?

a. Not going forward with the project means that 15 employees will be laid off for up to 6 months. The cost of unemployment, rehiring or hiring and training new replacement employees is approximately $7,000 per position. Does this information change your decision to move forward with this project?

b. What financial and ethical considerations should be made?