Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company can produce a single product at either of its two factories. Factory A can produce up to 2,000 units per month with a

image text in transcribed
image text in transcribed
A company can produce a single product at either of its two factories. Factory A can produce up to 2,000 units per month with a production cost of $22 per unit, while factory B can produce up to 1,900 units per month with a production cost of $21 per unit. Four customers are interested buying the product Customer D want to buy 1,150 units per month at $55.00 per units customer E want to buy 970 units per month at $54.00 per units, customer F want to buy 720 units per month at $53.00 per units, and customer G want to buy 920 units per month at $56.00 per units. The costs of shipping a unit of product from the factories to the customers are shown below: From factory A, to customer D- 5, to customer E-2, to customer F- 4, to customer G 2 dollars per unit From factory B, to customer D 3, to customer E-7, to customer F- 1, to customer G 4 dollars per unit; Thus it costs 3 dollars to ship one unit of product from factory B to customer D 7 dollars per unit to customer E and so on. Run Solver to find the optimal production and transportation decision. Do not use any comma in your answer. You must use the Solver optimal solution to answer the following questions: The company will generate a total monthly profit margin of Factory A should produce a total of Factory B should produce a total of dollars. units. units. You must use the Solver optimal solution to answer the following questions: The company will generate a total monthly profit margin of Factory A should produce a total of units. Factory B should produce a total of Factory A has an unused capacity of Factory B has an unused capacity of units dollars. units. units

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

Financial Accounting A Valuation Emphasis

Authors: John S. Hughes, Frances L. Ayres, Robert E. Hoskin

1st Edition

0471203599, 978-0471203599

More Books

Students also viewed these Accounting questions

Question

How can you develop media literacy?

Answered: 1 week ago