Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need the final answer only please. Thank you. The Furniture City (FC) company makes 3 kinds of couches: (1) Standard, (2) Deluxe, and (3)

I need the final answer only please. Thank you. image text in transcribed
image text in transcribed
image text in transcribed
The Furniture City (FC) company makes 3 kinds of couches: (1) Standard, (2) Deluxe, and (3) Luxury styles. Each couch goes through 3 production departments: (1) Cutting and Coloring. (2) Assembly, and (3) Finishing. The total number of hours available each month in each of the above departments is 500 , 700 and 400 , respectively. The time (in hours) required by 3 departments for making each couch and the profit per couch are listed below. The company has a contract of supplying at least a total of 150 Standard and Luxury couches per month. The company would like to make a production plan to maximize its total profit. Define S, D, L as the variables for the numbers of Standard, Deluxe and Luxury couches produced by the company. Then the corresponding LP model is built as follows: Max200S+300D+400L All variables are non-negative. When the above LP model is solved with Excel, we see the following Sensitivity Report. At which of the following price point(s) would FC consider producing Luxury couches? I. $401 II. $409 III. $405 II or III I. II or III II only I or II None of these prices

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

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

Financial Accounting Oakton Community College Tools For Business Decision Making

Authors: Paul D. Kimmel ,Jerry J. Weygandt ,Donald E. Kieso

6th Edition

1118113632, 978-1118113639

More Books

Students also viewed these Accounting questions