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Corp Inc. is a company that is specialized in producing very high-end skirts. Currently, the company produces long and short skirts. Each type of skirt

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Corp Inc. is a company that is specialized in producing very high-end skirts. Currently, the company produces long and short skirts. Each type of skirt requires a certain amount of processing time distributed as follows: 0 Long skirts require 1.2 hours for cutting and 0.7 of hours for sewing. 0 Short skirts require 0.8 hours for cutting and 0.6 for sewing. For producing one long skirt, Corp needs 6 yards of raw materials. This quantity is smaller (4 yards) when it comes to short skirts. These products have very high quality and their price reflects that: after taking costs into consideration, the marginal profits are $190 and $150 for long skirts and short skirts, respectively. Corp Inc. have to decide on their production quantities for next week as to maximize their profit. They have 1200 yards of fabric available. They also have 200 hours for cutting and 180 for sewing. However, if needed, they can schedule overtime for these two processes, at a cost of $15/hour of cutting time and $10/hour of sewing time. They cannot schedule overtime indefinitely, so they have a limit of 100 hours of overtime. The company wants to produce a minimum of 100 long skirts and 75 shorts skirts next week. Let L and S be the number of long and short skirts produced, respectively and 0c, 05 be the number of hours of overtime or cutting and sewing respectively. The use an LP model to maximize profits, which they solve in Excel. The computer solution is shown below: Optimal profit: $40,900

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