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Apple (Asia) 3-month plan Production Levels Power Mac G4 Powerbook G4 iMac iBook Revenue $ 3.750 $5.000 $ 2.500 $ 3.125 Production Production Minimum Market Cost Hours Production Demand $ 2.625 8 5.000 25.000 $ 3.750 10 5.000 15.000 $ 1.500 7 5.000 25.000 $ 2.250 5.000 5 15.000 Used Hours Budget (hours) 300.000 Production Cost $0 Budget (money) $158.250.000 Revenue Production Cost Profit $0 $0 $0 7 8 After your success in the manufacturing plant in Ireland, Apple decided to send you to China factory that serves Asia. Use the information in the Data to answer the following questions. Consider the data from the 'Data' sheet of this workbook. Consider the profits for each product (revenue - cost per product) and decide production levels by prioritizing the products according to their profits (also known as Patrick's way). What would be the production level of Power Mac G4? Use the Solver tool to find the optimal production levels with the given constraints. What is the profit in the optimal production? The brilliant newly graduated assistant, who did not take BUS 101 course, suggested that the Apple should produce exactly 80% of the market demand for each item. (Suppose use can use unlimited overtime!) How much overtime should Apple use to satisfy this production plan? a) (You are not supposed to think about the cost of overtime for this part!) If the hourly fee of overtime is $15, does Apple have enough budget to fund this b) production plan? (Choose Yes or No! 9