Martin Fences designs and installs chain link fences for residential and commercial properties. Martin Fences operates from April to October each year Overhead Resources There are three overhead resources at Martin Fe 1. Designers identify customer requirements and develop the bill of materials for the job. Martin Fences has one designer who works 900 hours during the season and is paid a fixed salary of $45,000. Martin Fences has one part time designer who works 450 hours during the season and is paid a fixed salary of $22,500. Martin Fences cannot hire any more designers. 2. Installers access the required materials, deliver the materials to the job site, and do the installation. Martin Fences has 2 full time installers who each work 900 hours during the season and each is paid a fixed salary of $22,500. Martin Fences cannot hire any more installers. The equipment (such as trucks and posthole diggers) has a fixed cost of $144,000 per season The practical capacity of the equipment is determined by the maximum amount of installer time available which is 1,800 hours. 3. Activities There are three activities at Martin Fences: Design, Acquire Materials, and Install Fence. The following table identifies the overhead resources and supplies consumed by each hour of design activity Resource Consumption per Hour Activity of Designer Hours Installer Hours Equipment Hours Supplies Cost Designer Hours Installer Hours Equipment Hours 1.00 0.50 0.00 $50.00 0.25 1.00 1.00 $25.00 0.50 1.00 1.00 Design Acquire Materials lies Cost Designer Hours Installer Hours Equipment Hours Supplies Cost Install Fence 100.00 For example, one hour of the Acquire Materials activity consumes 0.25 Designer Hours, 1.0 Installer Hour, and 1.00 Equipment hour Job Types Martin Fences has classified its offerings into three groups 1. 2. 3. Basic residential, which it calls the Home Package Large residential, which it calls the Estate Package Commercial The following table summarizes the average number of activity hours and materials costs consumed by each job type Commercial 14.00 11.00 32.00 800.00 $2,600.00 $10,000.00 $2,800.00 $6,500.00 $21,000.00 Home Estate Hours of Design Activity Hours of Acquire Activity Hours of Install Activity Direct Materials Cost Product Price 2.00 3.00 4.00 8.00 5.00 9.00 Required (1 Point) Martin Fences believes that the maximum market demand is 50 Home packages, 30 Estate packages, and 20 commercial packages. What profit will Martin Fences report if the company installs 50 Home packages, 30 Estate Packages, and 20 commercial packages in the upcoming season? How much of each available overhead resources will this plan consume? 1. 2. 2 Points) The installation manager has pointed out that Martin Fences does not have the capacity to undertake the installments in part 1. Given this, what is the production plan that will maximize profit for the upcoming season? 3. 1 Point) After the production plan in part 2 was created the installation manager pointed out that Martin Company already has taken orders to install 30 Home packages, 20 Estate packages, and 20 Commercial packages. These commitments must be met. Given this information, what is the production plan that will maximize profit for the upcoming season and recognizes these minimum production requirements? Martin Fences designs and installs chain link fences for residential and commercial properties. Martin Fences operates from April to October each year Overhead Resources There are three overhead resources at Martin Fe 1. Designers identify customer requirements and develop the bill of materials for the job. Martin Fences has one designer who works 900 hours during the season and is paid a fixed salary of $45,000. Martin Fences has one part time designer who works 450 hours during the season and is paid a fixed salary of $22,500. Martin Fences cannot hire any more designers. 2. Installers access the required materials, deliver the materials to the job site, and do the installation. Martin Fences has 2 full time installers who each work 900 hours during the season and each is paid a fixed salary of $22,500. Martin Fences cannot hire any more installers. The equipment (such as trucks and posthole diggers) has a fixed cost of $144,000 per season The practical capacity of the equipment is determined by the maximum amount of installer time available which is 1,800 hours. 3. Activities There are three activities at Martin Fences: Design, Acquire Materials, and Install Fence. The following table identifies the overhead resources and supplies consumed by each hour of design activity Resource Consumption per Hour Activity of Designer Hours Installer Hours Equipment Hours Supplies Cost Designer Hours Installer Hours Equipment Hours 1.00 0.50 0.00 $50.00 0.25 1.00 1.00 $25.00 0.50 1.00 1.00 Design Acquire Materials lies Cost Designer Hours Installer Hours Equipment Hours Supplies Cost Install Fence 100.00 For example, one hour of the Acquire Materials activity consumes 0.25 Designer Hours, 1.0 Installer Hour, and 1.00 Equipment hour Job Types Martin Fences has classified its offerings into three groups 1. 2. 3. Basic residential, which it calls the Home Package Large residential, which it calls the Estate Package Commercial The following table summarizes the average number of activity hours and materials costs consumed by each job type Commercial 14.00 11.00 32.00 800.00 $2,600.00 $10,000.00 $2,800.00 $6,500.00 $21,000.00 Home Estate Hours of Design Activity Hours of Acquire Activity Hours of Install Activity Direct Materials Cost Product Price 2.00 3.00 4.00 8.00 5.00 9.00 Required (1 Point) Martin Fences believes that the maximum market demand is 50 Home packages, 30 Estate packages, and 20 commercial packages. What profit will Martin Fences report if the company installs 50 Home packages, 30 Estate Packages, and 20 commercial packages in the upcoming season? How much of each available overhead resources will this plan consume? 1. 2. 2 Points) The installation manager has pointed out that Martin Fences does not have the capacity to undertake the installments in part 1. Given this, what is the production plan that will maximize profit for the upcoming season? 3. 1 Point) After the production plan in part 2 was created the installation manager pointed out that Martin Company already has taken orders to install 30 Home packages, 20 Estate packages, and 20 Commercial packages. These commitments must be met. Given this information, what is the production plan that will maximize profit for the upcoming season and recognizes these minimum production requirements