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Please upload your homework to Canvas before the above deadline. Late homework will not be graded. A manufacturer of vacuum cleaners produces three models of
Please upload your homework to Canvas before the above deadline. Late homework will not be graded. A manufacturer of vacuum cleaners produces three models of canister-style vacuum cleaners-the X-100, X200, and X300 - on a production line with three stations-motor assembly, final assembly, and test. The line is highly automated and is run by three operators, one for each station. Each operator works 300 hours per month. Data on production times, material cost, sales price, and bounds on demand are given in the following tables: Labor costs $20 per hour (including benefits), and overhead for the line is $460,000 per month. The current production plan calls for production of X-100, X-200, and X-300 to be 750,500 , and 100 units per month, respectively. (a) What is the monthly profit that results from the current production plan (i.e., sales revenue minus labor cost minus material cost minus overhead)? (b) Estimate the profit per unit of each model, using direct labor hours to allocate the overhead cost per month. Which product appears most profitable? Please propose an alternative production plan with maximum possible profit based on the profit per unit of each model
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