Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

All-Walnut, Inc. produces two models of bookcases. The bookcases sell for the amount listed in the table below. Each bookcase requires a certain number

image

All-Walnut, Inc. produces two models of bookcases. The bookcases sell for the amount listed in the table below. Each bookcase requires a certain number of labor hours, machine time, and materials (wood). Each unit of material costs $2.00. All-Walnut has a fixed number of labor and machine hours available. However, the amount of wood required varies by bookcase. They want to maximize their profit by determining how many of each type of bookcase to produce given their available labor and machine hours. The profit should consider both the selling price per unit and the cost of materials required for production. Selling Machine Material Labor Price Time Units Bookcase 1 $48 0.5 1 2 Bookcase 2 $35 0.4 0.75 1 Available 40 80 The linear program is given below. Let B1 represent the number of Bookcase 1 to produce. Let B2 represent the number of Bookcase 2 to produce. Maximize Profit: Profit = $48*B1 + $35*B2 - $2*Material Subject to: Material 2*B1 + 1*B2 Labor Constraint: 0.50*B1 + 0.40*B2

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To solve this optimization problem in Excel you can use the Solver ... 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

Managerial Accounting Tools for Business Decision Making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly

4th Canadian edition

1118856996, 978-1118856994

More Books

Students also viewed these Accounting questions