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PART C. Q. You are the new operations management trainee at Niagara Motors. They have a complex production process involving the following steps: Drawing, extrusion, winding, inspection and packaging. After inspection, good product is packaged and sent to the warehouse for shipping, but defective product is sent to be reworked. The major source of defective product is from the winding process, resulting in a total of 5% of all product being defective. Right now, there are more orders than they can fill. There is an inspection from head office coming in May, and they want to look as profitable as possible for the month closing in April. Determine the best possible production outcome for April. Details are provided in the Niagara Motors file. Here is a summary of the data available to you. Niagara Motors APRIL ORDERS Product W00750 Product W00330 Product W0005X Product W0007X 1350 225 1540 1111 Standard Costs (in $ per item) Product Product W0075c Product W00330 Product W0005x Product W0007x Material 33.5 24.5 35 75 Labour 9.9 7.5 10.5 11.25 Overhead 23.1 17.5 24.5 63.75 Selling Price 100 80 130 175 Note that Niagara Motors has promised their best customer the following during April: Product W0007 Product W00750 600 150 Plant Capacity (hours) Drawing Extrusion 4050 4200 Winding 2000 Packaging 2300 Winding 1 Bill of Labour (hours/unit) Product Drawing Product W0075c 1 Product W0033c 2 Product W0005x 0 Product W0007x 1 Extrusion 1 1 4 1 3 Packaging 1 0 3 2 0 0 Some Important information about plant: Avg output is 2400 unit per month Avg. machine utilization is 63% Retired employees are available to help out in drawing department if required