Constraint time from previous task: 492 hours, there is no longer constraint time.

How many sofas of each model should Harvey Furniture produce to maximise profits each week?

a) Number of units of Standard model to be produced?

b) Number of units of Premium model to be produced?

Harvey Furniture manufactures two models of sofas, Standard and Premium. Weekly demand is estimated to be 100 units of the Standard Model and 77 units of the Premium Model. The following per unit data apply: Standard ModelPremium Model Selling price per unit ($) 200 320 Variable costs per unit ($) 179 290 Total fixed costs 22 000 Number of labour hours required 3