ABCD believes it can sell each basketball for $14.00 and each football for $11.00. Further, the company believes that cost of material and labour costs will not change over the next production cycle. The corporate tax rate is 28%.
The company wants to determine the ideal number of basketballs and footballs to manufacture that will maximize the facilitys net profit after taxes.
Scenario ABCD, Ltd. is a sports equipment manufacturer that owns and operates a number of facturing plants across the country. The company operates one particular plan where both footballs and basketballs are actured. While the company has some flexibility to move manufacturing effort between basketball and football produa the current processes do impose limits on the minimum and maximum number of each ball that can be produced. Production capacity, cost of materials, labour costs, manufacturing time, and other known constraints are provided below: Production Capability and Constraints (All unit costs are in $ and time in hours) Total Machine hours available: Min 39,000 - Max 40,000 hrs. The number of basketballs that can be produced: Min 30,000 - Max 60,000 The number of footballs that can be produced: Min 20,000 - Max 40,000 Time to manufacture a Basketball: 0.5 hrs. Time to manufacture a Football: 0.3 hrs. Cost of labour -- 1 machine hour: $6.00 Cost of material-- 1 Basketball: $2.00 . Cost of material-- 1 Football: $1.25 . ABCD believes it can sell each basketball for $14.00 and each football for $11.00. Further, the company believes that cost of material and labour costs will not change over the next production cycle. The corporate tax rate is 28%. The company wants to determine the ideal number of basketballs and footballs to manufacture that will maximize the facility's net profit after taxes. Management Report Prepare a written management report that includes, at a minimum, the following sections: Purpose of the Report Description of the Problem Methodology (which would include the model formulation) Findings or Results Recommendations or Conclusions . Be sure to address all relevant points, discuss any assumptions you are making, and highlight the following items in your report: A recommendation for the number of basketballs and footballs to manufacture that maximizes net profit after taxes given the existing constraints. piid-993686 ATBarlink netrainted Norton Chicken advertises "lite" chicken with 30% fewer calories than standard chicken. When the process for "lite" chicken breast production is in control, the average chicken breast contains 420 calories, and the standard deviation in caloric content of the chicken breast population is 25 calories. Pioneer wants to design an x- chart to monitor the caloric content of chicken breasts, where 25 chicken breasts would be chosen at random to form each sample. 1. What are the lower and upper control limits for this chart if these limits are chosen to be four standard deviations from the target? 2. What are the limits with three standard deviations from the target? Scenario ABCD, Ltd. is a sports equipment manufacturer that owns and operates a number of facturing plants across the country. The company operates one particular plan where both footballs and basketballs are actured. While the company has some flexibility to move manufacturing effort between basketball and football produa the current processes do impose limits on the minimum and maximum number of each ball that can be produced. Production capacity, cost of materials, labour costs, manufacturing time, and other known constraints are provided below: Production Capability and Constraints (All unit costs are in $ and time in hours) Total Machine hours available: Min 39,000 - Max 40,000 hrs. The number of basketballs that can be produced: Min 30,000 - Max 60,000 The number of footballs that can be produced: Min 20,000 - Max 40,000 Time to manufacture a Basketball: 0.5 hrs. Time to manufacture a Football: 0.3 hrs. Cost of labour -- 1 machine hour: $6.00 Cost of material-- 1 Basketball: $2.00 . Cost of material-- 1 Football: $1.25 . ABCD believes it can sell each basketball for $14.00 and each football for $11.00. Further, the company believes that cost of material and labour costs will not change over the next production cycle. The corporate tax rate is 28%. The company wants to determine the ideal number of basketballs and footballs to manufacture that will maximize the facility's net profit after taxes. Management Report Prepare a written management report that includes, at a minimum, the following sections: Purpose of the Report Description of the Problem Methodology (which would include the model formulation) Findings or Results Recommendations or Conclusions . Be sure to address all relevant points, discuss any assumptions you are making, and highlight the following items in your report: A recommendation for the number of basketballs and footballs to manufacture that maximizes net profit after taxes given the existing constraints. piid-993686 ATBarlink netrainted Norton Chicken advertises "lite" chicken with 30% fewer calories than standard chicken. When the process for "lite" chicken breast production is in control, the average chicken breast contains 420 calories, and the standard deviation in caloric content of the chicken breast population is 25 calories. Pioneer wants to design an x- chart to monitor the caloric content of chicken breasts, where 25 chicken breasts would be chosen at random to form each sample. 1. What are the lower and upper control limits for this chart if these limits are chosen to be four standard deviations from the target? 2. What are the limits with three standard deviations from the target
