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PLEASE DO Q#2 (a) &(b) &(c) Orange Clockworks, Inc., (OC) manufactures two types of clocks: cuckoo clocks and grandfather clocks. A cuckoo clock sells for
PLEASE DO Q#2 (a) &(b) &(c)
Orange Clockworks, Inc., (OC) manufactures two types of clocks: cuckoo clocks and grandfather clocks. A cuckoo clock sells for $27 and uses 1 lb worth of raw materials. Each cuckoo clock that is manufactured increases OC's variable labor and overhead costs by $14. A grandfather clock sells for $21 and uses9 lb worth of raw materials. Each grandfather clock built increases OC's variable labor and overhead costs by $10. The manufacture of wooden cuckoo clocks and grandfather clocks requires two types of skilled labor: carpentry and finishing. A cuckoo clock requires 2 hours of finishing labor and 1 hour of carpentry labor. A grandfather clock requires 1 hour of finishing and 1 hour of carpentry labor. Each week, oC has only 100 finishing hours and 80 carpentry hours, and 700 lbs of raw material (costing $10/1b). Demand for grandfather clocks is unlimited, but at most 40 cuckoo clocks are bought each week. OC wants to maximize weekly profit (revenues-costs). Answer the following questions 2. Graphically deduce: a. (2 points) What the allowable range of change in contribution to profit for each of the clocks that will keep the current solution optimal b. (2 points) What the allowable range of changes in number of finishing hours carpentry hours, and lbs of raw materials that will keep the current basis feasible C. (2 points) The shadow prices of each of the three resources Orange Clockworks, Inc., (OC) manufactures two types of clocks: cuckoo clocks and grandfather clocks. A cuckoo clock sells for $27 and uses 1 lb worth of raw materials. Each cuckoo clock that is manufactured increases OC's variable labor and overhead costs by $14. A grandfather clock sells for $21 and uses9 lb worth of raw materials. Each grandfather clock built increases OC's variable labor and overhead costs by $10. The manufacture of wooden cuckoo clocks and grandfather clocks requires two types of skilled labor: carpentry and finishing. A cuckoo clock requires 2 hours of finishing labor and 1 hour of carpentry labor. A grandfather clock requires 1 hour of finishing and 1 hour of carpentry labor. Each week, oC has only 100 finishing hours and 80 carpentry hours, and 700 lbs of raw material (costing $10/1b). Demand for grandfather clocks is unlimited, but at most 40 cuckoo clocks are bought each week. OC wants to maximize weekly profit (revenues-costs). Answer the following questions 2. Graphically deduce: a. (2 points) What the allowable range of change in contribution to profit for each of the clocks that will keep the current solution optimal b. (2 points) What the allowable range of changes in number of finishing hours carpentry hours, and lbs of raw materials that will keep the current basis feasible C. (2 points) The shadow prices of each of the three resourcesStep by Step Solution
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