Question
Can you please read : Philco Manufacturing (PM) operates a factory in Strathcona County.PM can make trucks, cars, minivans, motorcycles, buses and go-karts. PM has
Can you please read : Philco Manufacturing (PM) operates a factory in Strathcona County.PM can make trucks, cars, minivans, motorcycles, buses and go-karts. PM has no problem getting all the resources it needs except for bench seats, steel, labor, wheels and headlights.
The following table shows information available to PM management about resources required for each product:
Trucks | Cars | Minivans | Motor Cycles | Buses | Go Karts | |
Seats | 1.0 | 2.0 | 4.0 | 0.0 | 16.0 | 2.0 |
Steel | 3.0 | 1.0 | 2.0 | 0.2 | 4.0 | 0.5 |
Labor | 1.5 | 1.0 | 1.0 | 0.5 | 3.0 | 3.0 |
Wheels | 18.0 | 4.0 | 4.0 | 2.0 | 6.0 | 2.0 |
Lights | 6.0 | 4.0 | 4.0 | 1.0 | 4.0 | 4.0 |
The accounting department has calculated that each product adds the following contribution per unit:
Trucks | Cars | Minivans | Motor Cycles | Buses | Go Karts | |
CM per unit | $12,000 | $9,800 | $10,000 | $2,400 | $13,000 | $2,500 |
The production manager has stated that she is having problems purchasing resources due to supply chain issues. The maximum units available are as follows:
Seats | Steel | Labor | Wheels | Lights | |
Max Units Available | 340 | 380 | 540 | 1,100 | 360 |
The marketing manager has stated that PM can sell anything it produces as there is strong demand for all their products. However there are some contract agreements that must be met as follows:
- There are contracts to sell 10 minivans to the City of Edmonton and 15 go-karts to Fun City in Sherwood Park next month.
- Municipal and provincial permits and regulations limit production of some products. PM is limited to producing no more than 10 motorcycles and 5 busses per month
Please can you take a look at the tables
A B D E G 1 Microsoft Excel 12.0 Answer Report 2 Worksheet: [Eg #3 - Philco Manufacturing.xIs]Main 3 Report Created: 5/25/2009 11:59:48 AM 6 Target Cell (Max) 7 Cell Name Original Value Final Value 8 SH$17 Contribution Margin Available 49,700 797,500 9 10 Adjustable Cells 11 Cell Name Original Value Final Value 12 $B$16 Units to Produce Trucks 1.00 0.00 13 $C$16 Units to Produce Cars 1.00 25.00 14 $D$16 Units to Produce Minivans 1.00 45.00 15 SE$16 Units to Produce Cycles 1.00 0.00 16 $F$16 Units to Produce Buses 1.00 5.00 17 $G$16 Units to Produce Go Karts 1.00 15.00 18 19 Constraints 20 Cell Name Cell Value Formula Status Slack 21 SH$21 Seats Total 340.00 SH$21=$D$5 Not Binding 35.00 28 $G$16 Units to Produce Go Karts 15.00 $G$16>=$G$5 Binding 0.00 29 SE$16 Units to Produce Cycles 0.00 SE$16Step by Step Solution
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