Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

STL Furniture produces three types of chairs: A, B, C. These chairs sell for A-$1,250, B-$800, C-$600. The general manager wants to determine how many

STL Furniture produces three types of chairs: A, B, C. These chairs sell for A-$1,250, B-$800, C-$600. The general manager wants to determine how many chairs to build of each type during the next quarter. Model A requires 5 hours to build, while model b requires 4 hours and model C requires 3 hours, the company has 8000 labor hours available, and each hour of labor costs 75 dollars. In order to sell these chairs, the company has to pay a one-time licensing fee for the design which is different for each of the models: A-$125, B-$200, C-$100. In order to guarantee that there is enough variety available for customers, the company has decided to produce a minimum of 300 units for each model. Develop a linear model with binary variables that can be used to maximize the company's profit, correctly accounting for fixed costs and staying within resource availabilities. What is the profit for the optimal solution

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

Schaums Outline Of Theory And Problems Of Managerial Accounting

Authors: Jae K. Shim, Joel G. Siegel

0070573050, 978-0070573055

More Books

Students also viewed these Accounting questions

Question

To know the different types of conspiracies.

Answered: 1 week ago

Question

e. What do you know about your ethnic background?

Answered: 1 week ago

Question

b. Why were these values considered important?

Answered: 1 week ago