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and C) To increase the total profit, the three partners have agreed that one of them will slightly increase the maximum number of hours available
and
C) To increase the total profit, the three partners have agreed that one of them will slightly increase the maximum number of hours available to work per week. The choice of which one will be based on which one would increase the total profit the most. Use the sensitivity report to make this choice. (Assume no change in the original estimates of the unit profits.)
Who should increase their hours?
PLEASE SOLVE A,B, and C.
Davld, LaDeana, and Lydla are the sole parthers and workers in a company that produces fine clocks. Davld and LaDeana are each avallable to work a maximum of 40 hours per week at the company, while Lydla is avallable to work a maxlmum of 20 hours per week. The company makes two different types of clocks: a grandfather clock and a wall clock. To make a clock, David (a mechanical engineer) assembles the Inside mechanical parts of the clock while LaDeana (a woodworker) produces the hand-carved wood casings. Lydla is responsible for taking orders and shipping the clocks. The amount of time required for each of these tasks is shown next. Click here for the Excel Data File Each grandfather clock bult and shipped ylelds a profit of $300, while each wall clock ylelds a profit of $200. The three parthers now want to determine how many clocks of each type should be produced per week to maximize the total profit. a. Formulate and solve this model on a spreadsheet, and then generate a sensitivity report to fill in the Information below. Note: If an allowable increase/decrease is 10,000 or larger, simply enter 10,000 . Round all decimal values to 3 decimal places. b. Determine the total profitStep by Step Solution
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