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Question 7 (8 points) Pontiac used to make two very special cars - The Trans Am and the Formula. Each car had similar performance,
Question 7 (8 points) Pontiac used to make two very special cars - The Trans Am and the Formula. Each car had similar performance, but different costs to Pontiac to build. A Trans Am, for example, would cost $16,150 to manufacture per unit, whereas every Formula cost less at $15,890. The plant had 2,400 hours of assmebly time available. Each Formula needed 9 hours, and the more involved Trans Am needed 10 hours each. Each car would be checked for quality at the end of the assembly line, with a Trans Am needing 1.3 hours each, and a Formula 1.4 hours each. Only two people were trained in quality control, limiting the hours to 320. Pontiac had to determing the optimal mix of cars to minimize costs. At least 240 cars were set for production, and at least half of production had to be Trans Ams. 1. Define and write out your variables first (clearly), 2. Formulate the problem as a linear program in Excel, with the objective to minimize costs. 3. Solve the linear program with an integer solution, and state your optimal production mix and corresponding profit.
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