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Exercise 14-42 Linear Programming (Appendix) (LO 14-6, 14-8) Duo Company manufactures two products, Uno and Dos. Contribution margin data follow. Unit sales Less variable
Exercise 14-42 Linear Programming (Appendix) (LO 14-6, 14-8) Duo Company manufactures two products, Uno and Dos. Contribution margin data follow. Unit sales Less variable cost: Direct material Uno $13.00 Dos $31.00 $ 7.00 $ 5.00 Direct labor 1.00 6.00 Variable overhead 1.25 7.50 Variable selling and administrative cost 0.75 0.50 Total variable cost $10.00 $19.00 Unit contribution margin $ 3.00 $12.00 Assume that the direct-labor rate is $24 per hour, and 10,000 labor hours are available per year. In addition, the company has a short supply of machine time. Only 8,000 hours are available each year. Uno requires 1 machine hour per unit, and Dos requires 2 machine hours per unit. Required: Formulate the production planning problem as a linear program, assuming X, Y 0. X denotes Uno and Y denotes Dos. 2. Identify the objective function. 3. Identify the constraints. Z Complete this question by entering your answers in the tabs below. Required 2 Required 3 Identify the objective function. X + < Required 2 Required 3 >
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