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Metallics Inc. produces two products: X and Y. Each product is processed through two departments: (i) Assembly and (ii) Inspection. Below is some information on
Metallics Inc. produces two products: X and Y. Each product is processed through two departments: (i) Assembly and (ii) Inspection. Below is some information on X and Y: Per unit of X Per unit of Y Machine hours: Assembly 2 3 Inspection 1 1 Below is part of the sensitivity report for the firm's optimal production plan: Final Value Shadow Price Allowable Increase Allowable Decrease M/c hours in 1,700 25 600 1,700 Assembly M/c hours in 650 28 300 650 Inspection The firm receives an offer from a neighboring manufacturer to perform inspection of 50 units of product Y for $27 per unit. Currently, the firm incurs $24 per unit of Y in inspection costs. The increase in the firm's profits if the firm outsources inspection of 50 units of product Y is (round your answer to the nearest dollar amount. Please provide numerical value only.) Metallics Inc. produces two products: X and Y. Each product is processed through two departments: (i) Assembly and (ii) Inspection. Below is some information on X and Y: Per unit of X Per unit of Y Machine hours: Assembly 2 3 Inspection 1 1 Below is part of the sensitivity report for the firm's optimal production plan: Final Value Shadow Price Allowable Increase Allowable Decrease M/c hours in 1,700 25 600 1,700 Assembly M/c hours in 650 28 300 650 Inspection The firm receives an offer from a neighboring manufacturer to perform inspection of 50 units of product Y for $27 per unit. Currently, the firm incurs $24 per unit of Y in inspection costs. The increase in the firm's profits if the firm outsources inspection of 50 units of product Y is (round your answer to the nearest dollar amount. Please provide numerical value only.)
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