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SlngaPura Water Company Barn and $11.32. are the owner-operators of the 19m Water Company, SWC, based in Singapore. The average rainfall is 90 inches per
SlngaPura Water Company Barn and $11.32. are the owner-operators of the 19m Water Company, SWC, based in Singapore. The average rainfall is 90 inches per year. SWC collects rainwater and performs various treatments to remove sediments and impurities, and, packages it in ecu-friendly bottles. SWC offers two bottle sizes: H1 for home use and C2 for corporate use. Sam and S_uy1_'_ expect there will be six rainstorms in the upcoming month. All rainwater collected in their catchment must be harvested, i.e. treated and packed, within 2 days after rainfall. Sam and Su can work up to 10 hours per day. It takes them 1 hour to harvest a H! bottle and 4 hours to harvest a C2 bottle. (The C2 bottle must pass 14 additional tests to meet the high standards of corporate use.) The cost of materials such as hydro-sand, carbon compounds and oxy-fuse is $12 per Hl bottle and $47 per C2 bottle. From historic data they believe they will have a demand of 40 bottles of H1 and 25 bottles of C2. They plan to price H1 at $35/bottle and C2 at $120/bottle. (a) How many bottles of each type should they plan to produce in the upcoming month? (b) Should they buy the new integrated water-test-pack system which costs $3700? up to 10 hours per day. It takes them I hour to harvest a HI bottle and 4 hours to harvest a C2 bottle. (The C2 bottle must pass 14 additional tests to meet the high standards of corporate use.) The cost of materials such as hydro-sand, carbon compounds and oxy-fuse is $12 per HI bottle and $47 per C2 bottle. From historic data they believe they will have a demand of 40 bottles of HI and 25 bottles of C2. They plan to price HI at $35/bottle and C2 at $120/bottle. (a) How many bottles of each type should they plan to produce in the upcoming month? (b) Should they buy the new integrated water-test-pack system which costs $3700? (c) Sam proposes reducing their prices, HI to $30/bottle and C2 to $100/bottle because it will improve demand, HI to 55 bottles and C2 to 32 bottles. Should they do this? (d) Suyi proposes hiring additional people on a per-job basis. This will add a cost of $4 to HI bottles and $6 to C2 bottles, respectively, but it will lower harvest time by 20 minutes per HI bottle and 60 minutes per C2 bottle. Should they do this? (e) If they combine the two alternatives (c) and (d), will it improve their overall profit
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