COMPA ..produces two models, Alpha and Gamma, using "Bob", a new manufacturing process Information regarding Alpha and Gamma is summarized in the following table ALPHA $80 $50 6 hours GANMA $60 $30 2 hours Price per unit Variable cost per unit Amount of BOB processing time required per unit BOB can only be used for 120 hours per week. The Company has fixed costs of $720 per week Required: 1. Given the data above, assuming that there is no limit on the demand and that they can produce as much of either product as they wish, they should produce how much of each product? 2. A new attachmetable that will increase the capacity of Bob by an additional 20 hours per week. The part has a useful life of 4 weeks, after which it must be replaced What is the maximum that they would be willing to pay for this new attachment? Why? 3. Assume the original 120 hour limit, but that there is a limited demand of 30 units of Gamma per week and 15 units of Alpha per week. How much of Alpha and Gamma should they produce? 4. The company has a contract with a customer who has a standing order for 11 units of Alpha per week which must be produced regardless. How much of each product should WALSH 5. Assume the original situation (that they can produce as much or little of either product as they wish), and that they have chosen to produce ALL Gamma. Furthermore, assume that the company is operating at full capacity. MARKOFF CORP. has approached the company and wishes to place an order for 5 units of Alpha. What is the minimum amount that they should charge? Why