Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding Basic Statistics

Authors: Charles Henry Brase, Corrinne Pellillo Brase

6th Edition

9781111827021

Students also viewed these Accounting questions