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A manufacturing company wants to maximize its revenue from the car seats it sells. It produces three different kinds of automobile seatsleather, cloth, and vinyl.
- A manufacturing company wants to maximize its revenue from the car seats it sells. It produces three different kinds of automobile seatsleather, cloth, and vinyl. The leather seats cost $1800 to manufacture. The cloth seats cost $1200 and the vinyl costs $500. The company has $2,000,000 to spend on wholesale costs. The leather seats require 30 man hours of labor to produce. The cloth seats 28 and the vinyl seats 18. The company has 40,000 labor hours available each month. Because the company wants to move away from vinyl, it wants the vinyl seats to represent no more than half of its total sales. If the company makes $3300 on each leather seat, $2600 on each cloth seat, and $1600 on each vinyl seat, how should it distribute its manufacturing (assuming it can sell all it makes)? If the company had 300 more labor hours each month, what would be the impact to revenue?
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