Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The management of Hartman Company is trying to determine the amount of each of two products to produce over the coming planning period. The following

image text in transcribedimage text in transcribed

The management of Hartman Company is trying to determine the amount of each of two products to produce over the coming planning period. The following information concerns labor availability, labor utilization, and product profitability: \begin{tabular}{|cccc|} \hline \multicolumn{4}{|c|}{ Labor-Hours Required (hours/unit) } \\ \hline Department & Product 1 & Product 2 & Hours Available \\ \hline A & 1.00 & 0.35 & 95 \\ B & 0.30 & 0.20 & 38 \\ C & 0.20 & 0.50 & 50 \\ Profit contribution/unit & $30.00 & $15.00 & \\ \hline \end{tabular} (a) Develop a linear programming model of the Hartman Company problem. Solve the model to determine the optimal production quantities of products 1 and 2. If required, round your answer to two decimal places. \begin{tabular}{|l|} \hline Product 1 Product 2 \\ \hline Production \\ \hline \end{tabular} (b) In computing the profit contribution per unit, management does not deduct labor costs because they are considered fixed for the upcoming planning period. However, suppose that overtime can be scheduled in some of the departments. Which departments would you recommend scheduling for overtime? - Select your answer - ^ What is the upper limit of what you would be willing to pay per hour of overtime in the department you recommended? If required, round your answer to two decimal places. c) Suppose that 10,6 , and 8 hours of overtime may be scheduled in departments A,B, and C, respectively. The cost per hour of overtime is $18 in department A,$22.50 in department B, and $12 in department C. Formulate a linear programming model that can be used to determine the optimal production quantities if overtime is made available. What are the optimal production quantities, and what is the revised to If required, round your answer to two decimal places. If required, round your answer to nearest whole number. Total Profit \$ How much overtime do you recommend using in each department? If required, round your answer to two decimal places. If you answer is zero, enter " 0 ". What is the increase in the total contribution to profit if overtime is used? If required, round your answer to nearest whole number. $

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

Business Analysis With Microsoft Excel

Authors: Conrad Carlberg

3rd Edition

0789736640, 9780789736642

More Books

Students also viewed these Accounting questions

Question

LO5 Explain how to generate effective recruitment advertisements.

Answered: 1 week ago