Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

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

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.

  1. How many units of each product should be produced to maximize the total profit contribution?
    Product # of units
    1 fill in the blank 1
    2 fill in the blank 2
    3 fill in the blank 3
    What is the projected weekly profit associated with your solution? $ fill in the blank 4
  2. 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: fill in the blank 5 Hours; Machine 2: fill in the blank 6 Hours
  3. What is the value of an additional hour of labor? If required, round your answers to two decimal places. $ fill in the blank 7
  4. 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 fill in the blank 8
    2 fill in the blank 9
    3 fill in the blank 10
    Profit: $ fill in the blank 11 Would you be interested in using the additional 20 hours available for this resource?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Quantitative Methods For Business

Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Cam

11th Edition

148

More Books

Students also viewed these Finance questions

Question

How do you add two harmonic motions having different frequencies?

Answered: 1 week ago