Question
Elmo Short manufactures pine tables which are distributed through a retail chain. Each table is sold for $100 and requires 2 hours of labor ,
Elmo Short manufactures pine tables which are distributed through a retail chain. Each table is sold for $100 and requires 2 hours of labor, 1 hour of saw time, and $30 of materials. Due to shop size limitations, Elmo is limited to two carpenters who are paid $400 each for a forty-hour week. The variable cost of saw operation is $20 per hour. Assume that the saw operations that Elmo is purchasing have a limit of 35 hours per week. Note that you now have two constraints: a labor constraint of 80 hours per week and a sawing operation constraint of 35 hours a week.
What is the maximum contribution Elmo can generate per week with optimally working on the two orders?
What should be the product mix?
Hint: use "Solver" in Excel to solve.
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