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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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