't Buglear (2004) - Quantita... 2.19 Wooffer & Tweeter make speakers for the specialist audio mar- ket. Following the death of the founder of their rival, they have acquired the assets of his company, the Croaker Can & Cab Co. These assets consist of raw materials used to make the two types of speaker produced by Croaker, the Cosmic and the Celestial. The assets and their value are: Item Quantity Total value () Speaker unit 3000 27,000 Birch ply 1200 m2 12,000 Grille sheet 320 m 1600 Wooffer & Tweeter plan to use these materials to make a final consignment of Croaker speakers. The production require- ments for the products are: Item Cosmic (per pair) Celestial (per pair) Speaker units Birch ply 2.4 m 1.0 m2 Grille sheet 0.4 m2 0.8 m Labour 1 hour 1.6 hours An unlimited supply of labour is available at a cost of 10 per hour Croaker had an outstanding order for 200 pairs of Cosmic speakers for the Asteroid retail group, and have agreed to fulfil this order as they are anxious to do further business with Asteroid: (a) If Cosmic speakers sell for 100 a pair and Celestial speakers sell for 91 a pair, what production combination will maxi- mize revenue, and what will the maximum revenue be? 020 23% 12:58 pm Buglear (2004) - Quantita... : An unlimited supply of labour is available at a cost of ITO per hour Croaker had an outstanding order for 200 pairs of Cosmic speakers for the Asteroid retail group, and have agreed to fulfil this order as they are anxious to do further business with Asteroid. (a) If Cosmic speakers sell for 100 a pair and Celestial speakers sell for 91 a pair, what production combination will maxi- mize revenue, and what will the maximum revenue be? uantitative methods for business Chapter 2 (b) Work out the variable cost for each product and subtract it from the selling price to find the profit from each product. (c) Find the number of pairs of each type of speaker that should be made to maximize profit, and work out what the profit would be. (d) How much, if any, extra profit would be made by not ful- filling the Asteroid order