Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Quality Air Conditioning manufactures three home air conditioners: an economy model, a standard model, and a deluxe model. The profits per unit are 63,95, and

Quality Air Conditioning manufactures three home air conditioners: an economy model, a standard model, and a deluxe model. The profits per unit are 63,95, and $135, respectively. The production requirements per unit are as follows:

Number of Fans Number of Cooling Coils Manufacturing Time (hours)
Economy 1 1 8
Standard 1 2 12
Deluxe 1 4 14

For the coming production period, the company has 220 fan motors, 340 cooling coils, and 2,500 hours of manufacturing time available. How many economy models (E), standard models (S), and deluxe models (D) should the company produce in order to maximize profit? The linear programming model for the problem is as follows:

A. Use Linear Programming Excel Solver Solution to Determine the optimal mix of air conditioners to produce to to maximize the profit. In other words, how many of each of the three air conditioners should the manufacturer produce?

B. Based on the results in part (a), identify and interpret the range of optimality for each of the three objective function coefficients.

{Interpretation Hint: The solution of [x1=12 rolltop desks] and [x2= 4 regular desks] remains optimal as long as the [profit per unit of a rolltop desk] remains between [$45] and [$135]}

C. What is the estimated change in the objective function value (i.e., profit) if the company were to obtain 50 additional fan motors?

{Interpretation Hint: An increase of one unit in the right-hand-side value of the [Maple Constraint] leads to a change of [7 dollars] in [total profit of Sidneyville]}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

13th edition

978-1285868806, 1285868803, 978-1305691254, 978-1305465640, 1305465644, 978-1285866307

More Books

Students also viewed these Accounting questions

Question

Cite ways to overcome fear of success.

Answered: 1 week ago

Question

Where did we miss opportunities?

Answered: 1 week ago

Question

How did we manage the project implementation?

Answered: 1 week ago

Question

How did we design the project information?

Answered: 1 week ago