Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 3 and R is the number of extra diamonds to purchase. African Designer Jewellers uses diamonds and sapphires to produce two styles of rings.

image text in transcribedimage text in transcribed

Question 3 and R is the number of extra diamonds to purchase. African Designer Jewellers uses diamonds and sapphires to produce two styles of rings. A style A Justify your answers with numbers, calculations and reasons. ring requires 2 diamonds, 3 sapphires and 1 hour of Thabo the Jeweller's labour. A style B ring Use the LINDO output in the PRINTOUT to answer the following questions: requires 3 diamonds, 2 sapphires, and 2 hours of Thabo's time. Each style A ring sells for R7000 and each style B ring sells for R15000. All rings produced by Thabo can be sold. 3.1 Suppose that instead of R2000, each extra diamond costs R5 100. Would African Designer At present, African Designer Jewellers has 100 diamonds, 120 sapphires and 70 hours of Thabo's Jewellers still purchase extra diamonds? What would be the new optimal solution to the labour. Extra diamonds can be purchased at a cost of R2 000 each. Market demand requires that problem? the company must produce at least 20 style A rings and at least 25 style B rings. To maximise profit, African Designer Jewellers should solve the following LP model: 3.2 Suppose that African Designer Jewellers were only required to produce at least 18 style A rings. What would their profit be? 3.3 What is the most that African Designer Jewellers would be willing to pay for another hour of Thabo's labour? How much time can they buy while keeping the basis of the solution the same? Here, X1 is the number of style A rings and X2 is the number of style B rings to produce respectively and R is the number of extra diamonds to purchase. Justify your answers with numbers, calculations and reasons. Use the LINDO output in the PRINTOUT to answer the following questions: 3.4 What is the most that African Designer Jewellers would be willing to pay for another diamond? RANGES IN WHICH THE BASIS IS UNCHANGED: 3.5 African Designer Jewellers is considering to produce style C rings. Each style C ring can be sold for R 15500 and requires 4 diamonds, 2 sapphires and 1 hour of Jeweller's labour. Write down the new LP model that should be solved

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

Franchising An Accounting Auditing And Income Tax Guide

Authors: Ross A. McCallum

2011edition

1460906179, 978-1460906170

More Books

Students also viewed these Accounting questions