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Constrained Optimization: Multiple Internal Constraints Fisher Company produces two types of components for airplanes: A and B, with unit contribution margins of $400 and $600,

Constrained Optimization: Multiple Internal Constraints

Fisher Company produces two types of components for airplanes: A and B, with unit contribution margins of $400 and $600, respectively. The components pass through three sequential processes: cutting, welding, and assembly. Data pertaining to these processes and market demand are given below (weekly data).

Resource Resource Available Resource Usage (A) Resource Usage (B)
Cutting 300 machine hours Six hours Ten hours
Welding 308 welding hours Ten hours Six hours
Assembly 400 labor hours Four hours Ten hours
Market demand (A) 50 One unit Zero units
Market demand (B) 40 Zero units One unit

Required:

What is the incremental benefit per machine hour caused by the additional ten hours, if any?

$ per machine hour

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