Better Products, Inc., manufactures three products on two machines. In a typical week, 40 hours are available on each machine. The profit contribution and production time in hours per unit are as follows:

Two operators are required for machine 1; thus, 2 hours of labor must be scheduled for each hour of machine 1 time. Only one operator is required for machine 2. A maximum of 100 labor-hours is available for assignment to the machines during the coming week. Other production requirements are that product 1 cannot account for more than 50% of the units produced and that product 3 must account for at least 20% of the units produced.

a:) How many units of each product should be produced to maximize the total profit contribution?

Product	# of units
1
2
3

b:) What is the projected weekly profit associated with your solution? $ ____________

c:) How many hours of production time will be scheduled on each machine? If required, round your answers to two decimal places. Machine Hours Schedule: Machine 1:__________Hours; Machine 2:____________ Hours

d: What is the value of an additional hour of labor? If required, round your answers to two decimal places. $ _______________

e:) Assume that labor capacity can be increased to 120 hours. Develop the optimal product mix, assuming that the extra hours are made available.

Product	# of units
1
2
3

Profit: $______________ Would you be interested in using the additional 20 hours available for this resource? Yes No