Question
Acme Inc. produces computers for the PC market. They can produce four types of computers at their factory. These are discount desktops, discount laptops, premium
Acme Inc. produces computers for the PC market. They can produce four types of computers at their factory. These are discount desktops, discount laptops, premium desktops, and premium laptops. Acme Inc. would like your assistance in using Excel's Solver function in determining how many of each type of computer they should produce in order to maximize profit.
You are provided information about the number of hours required to make each type of computer as well as the unit revenue on each type of computer.
Hours Unit Revenue
Discount desktops2$600
Discount laptops3$800
Premium desktops3$1000
Premium laptops5$1300
You are also provided with the market demand for various categories of computers. In performing the analysis, the number of each type of computer produced should not exceed the demand for that type of computer.
Total demand for desktop computers: 800Total demand for laptop computers: 900
Total demand for discount computers: 700Total demand for premium computers: 1000
You are also told that the hourly labor cost is $20 and the total labor-hours available are 4500. The total labor hours used should not exceed the total labor hours available.
Using Solver, determine the optimal number of each type of computer to produce while maximizing profit (total revenue-labor cost). Pay special attention to constructing a well designed worksheet with a clear and logical layout, appropriately labeled. Be sure to specify all the constraints listed in a Constraints section in the worksheet. In addition, keep in mind that the number of computers produced should be greater than or equal to zero and these should be integers since we cannot produce fractional numbers of computers. Label your worksheet 5-PC Production. Also use an answer report at the end
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