Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A manufacturing firm has discontinued production of a certain unprofitable product line. Considerable excess production capacity was created as a result. Management is considering devoting

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

A manufacturing firm has discontinued production of a certain unprofitable product line. Considerable excess production capacity was created as a result. Management is considering devoting this excess capacity to one or more of three products: X1,X2, and X3. Machine hours required per unit are The available time in machine hours per week is The salespeople estimate they can sell all the units of X1 and X2 that can be made. But the sales potential of X3 is 100 units per week maximum. Unit profits for the three products are a. Set up the equations that can be solved to maximize the profit per week. (Leave no cells blank - be certain to enter "0" wherever required.) b. Solve these equations using the Excel Solver. (Leave no cells blank - be certain to enter "O" wherever required. Round your answers to the nearest whole number.) c. How much of each constraint or resource is unused? (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to the nearest whole number.) d-1. Would the machines work at capacity? d-2. Will X3 be at maximum sales capacity? No Yes e. Suppose that an additional 350 hours per week can be obtained from the Milling machine by working overtime. The incremental cost would be $2.00 per hour. What would be the allowable increase (from the excel sensitivity report) in overtime when compared to additional hours that can be obtained? (Round "shadow price" to 2 decimal places and the rest to the nearest whole number.)

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

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

Tourism Concepts And Practices

Authors: John R Walker, Josielyn T Walker

1st Edition

0138142459, 9780138142452

More Books

Students also viewed these General Management questions