Part (b) Ralph Mauren operates a woodworking shop that makes tables and chairs. He has 25 employocs working 40 hourn per wrek and he has 750 houn per week inalable in machine time. Ralph knows that he must make at least four ehairs for every table. He has also determined the following additional requirements: Required: Write the objoctive function and conatraints given the above informatine. Part (e) Tommy's Compary is working at full production eapacity producing 10,000 units of a unique jeroduct, PTSD, Masufacturing costs per unit for PTSD are as follows: The unit manufacturing overthead cost is based on a variable cost per unit of \$2 and fixed costs of $30,000 (at full capacity of 10,000 unsta). The nov. manufacturine costs, all variable, are $s per unit, and the sefline peice is $20 per unit. A customer, Flounding Corporation, has asked Toenmorn to produce 2,000 units of a modification of PTSP to be called PTSI. PTSI would tequire the same manufacturiag precesses as PTSD. Flounding Corporating has edfered te per unir. Required: (1) What is the opportunity cost to Tommy's of producing the 2,000 units of PTS1. assuming that no overtime is worked? (2) The Wister Company has ollered to produce the 2,000 units of Prst for Toenmy's, so that Tommy's can aceept the Flounding offer. Wintes woald charpe Tommy's $14 per unit for the PTSI. Should Tomsmy's aceept the Winter Cempany's offer? (3) Suppose Tommy's had been working at less than fall capacity producing 8,000 units of PTSD at the time the PTSt offer was made. What is the minimum price Toeniny's should accept for PTSt under these conditions? Dape 2 ar E Part (d) The managemeat of HPE Induatsies has been evaluating whether the esempany should continue masufacturing a component of purchase if from an external supplier. A $100 cost per component was determined as follows: HPE uses 4,000 consonents per year. After GG Corp subminted a bid ef $80 per compotient, some members of management felt they could reduce costs by buyine from outside and discontinuine production of the comporsent. If the componest is parchased from GO. UPF, untased production facilitirs could be leased to another company for $50,000 per year. Required: (1) Determine the unit cost to contimue production of the component. (2) Should the company make or buy the component? State the total dollar difference in favour of that alternative. (3) Assume that HPE could eliminate one peoduction supervisoe with a salary of $30,000 if the component is parehased from an outside supplier. Deferminn now if the company abould make or bery the coenponent and state the fotal dollar difference in fawosar of that alternative