Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

?Question 1 : ( 3 0 ?points ) The company Jugueton sells two electric ride - on cars. They buy all the components from different

image text in transcribed
?Question 1: (30 ?points)
The company Jugueton sells two electric ride-on cars. They buy all the components from
different suppliers and they assemble by hand the products. The ride-on cars are tested before
being packaged for sale. The difference between the products is that car Y ?also has a remote-
control feature. The following budgeted details relate to the ride-on cars:
The following costs are derived from their budget this year:
During the following month there is a limitation in the number of hours allocated for
assembling and testing because of a legal union action. For assembly, they are limited to 100
hours and for testing 50 ?hours. The managers want to find out how the resources should be
distributed by product in order to maximize their profits.
Required
Calculate the contribution per unit for each type of product (5p).
Determine the objective function based on these two constraints (2 ?p).
Write the equations for the two constraints (2p)
4 ?Determine the mix of products that will maximize profits for the business, using a graphical
linear programming solution:
(a) ?Solve the equations to calculate the points where both lines intercept. (2.5p)
(b) ?Draw the lines for the constraints and identify the comer points that make up the feasible
region. (5p)
(c) ?Determine the mixed of products for the comer point where both lines intercept using the
substitution method. (5p)
Identify the mix of products that will maximize the contribution and the total
contribution.(2.5p)
The manager wants to consider the maximum sales that they can achieve for each product.
They can sell up to 200 ?items of x ?and 220 ?items of Y. ?Reassess the feasible region and determine whether the mix of products that maximize contribution has changed. Also update the graph. (6p)
image text in transcribed

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

Step: 3

blur-text-image

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 Tools for Business Decision Making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly

3rd Canadian edition

978-1118727737, 1118727738, 978-1118033890

More Books

Students also viewed these Accounting questions

Question

Explain the various methods of job evaluation

Answered: 1 week ago

Question

Differentiate Personnel Management and Human Resource Management

Answered: 1 week ago

Question

Describe the functions of Human resource management

Answered: 1 week ago

Question

What are the objectives of Human resource planning ?

Answered: 1 week ago