Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A manufacturer of outdoor clothing makes wax jackets and trousers. Each jacket requires 1 hour to make, whereas each pair of trousers takes 40 minutes.

A manufacturer of outdoor clothing makes wax jackets and trousers. Each jacket requires 1 hour to make, whereas each pair of trousers takes 40 minutes. The materials for a jacket cost $32 and those for a pair of trousers cost $40. The company can devote only 34 hours per week to the production of jackets and trousers, and the firm’s total weekly cost for materials must not exceed $1200. The company sells the jackets at a profit of $12 each and the trousers at a profit of $14 per pair. Market research indicates that the firm can sell all of the jackets that are produced, but that it can sell at most half as many pairs of trousers as jackets.

a- How many jackets and trousers should the firm produce each week to maximize profit?

b- Due to the changes in demand, the company has to change its profit margin on a pair of trousers. Assuming that the profit margin on a jacket remains at $12 and the manufacturing constraints are unchanged, find the minimum and maximum profit margins on a pair of trousers which the company can allow before it should change its strategy for optimum output.


Step by Step Solution

3.46 Rating (162 Votes )

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

Step: 3

blur-text-image

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

Statistics For Management And Economics Abbreviated

Authors: Gerald Keller

10th Edition

978-1-305-0821, 1285869648, 1-305-08219-2, 978-1285869643

More Books

Students also viewed these Mathematics questions

Question

Derive Eq. (18.33) from Eq. (18.32).

Answered: 1 week ago