Vollmer Manufacturing makes three components for sale to refrigeration companies. The components are processed on two machines: a shaper and a grinder. The times (in minutes) required on each machine are as follows. Please answer the following
Voilmer Manufacturing makes three components for sale to refrigeration companies. The components are processed on two machines: a shaper and a grinder. The times (in minutes) required on each machine are as follows. Machine Component Shaper Grinder 1 4 5 3 The shaper is available for 120 hours, and the grinder is available for 110 hours. No more than 200 units of component 3 can be sold, but up to 900 units of cach of the other components can be sold. In fact, the company already has orders for 600 units of component that must be satisfied. The per unit selling price and per unit variable costs for each of the three components are as follows. Component Selling Price Material Cost Labor Cost 1 $25 $12 $5 2 $18 $8 $4 $ $27 $13 $ $5 (a) For each component, calculate the profit margin (in dollars, profit margin-seling price - material cost-labor cost). component ! $U component 2 $ component 3 $ Formulate and solve for the recommended production quantities that will maximize contribution to profit components units component 2 units component 3 units (b) What are the objective coefficient ranges (in dollars) for the three components? (If there is no upper or lower limit, enter NO LIMIT. Round your answers to two decimal places.) component $ $ 1 tos component 2 $ component to $ Interpret these ranges for company management. Individual changes in the profit coefficients within these ranges will not cause a change in the optimal number of components to produce Individual changes in the profit coefficients within these ranges will cause changes in the optimal number of components to produce. Individual changes in the profit coefficients outside these ranges will not cause a change in the optimal number of components to produce (c) What are the right-hand side ranges? (Use minutes for time. If there is no upper or lower limit, enter NO LIMIT. Round your answers to the nearest Integer.) shaper availability to grinder availability Voilmer Manufacturing makes three components for sale to refrigeration companies. The components are processed on two machines: a shaper and a grinder. The times (in minutes) required on each machine are as follows. Machine Component Shaper Grinder 1 4 5 3 The shaper is available for 120 hours, and the grinder is available for 110 hours. No more than 200 units of component 3 can be sold, but up to 900 units of cach of the other components can be sold. In fact, the company already has orders for 600 units of component that must be satisfied. The per unit selling price and per unit variable costs for each of the three components are as follows. Component Selling Price Material Cost Labor Cost 1 $25 $12 $5 2 $18 $8 $4 $ $27 $13 $ $5 (a) For each component, calculate the profit margin (in dollars, profit margin-seling price - material cost-labor cost). component ! $U component 2 $ component 3 $ Formulate and solve for the recommended production quantities that will maximize contribution to profit components units component 2 units component 3 units (b) What are the objective coefficient ranges (in dollars) for the three components? (If there is no upper or lower limit, enter NO LIMIT. Round your answers to two decimal places.) component $ $ 1 tos component 2 $ component to $ Interpret these ranges for company management. Individual changes in the profit coefficients within these ranges will not cause a change in the optimal number of components to produce Individual changes in the profit coefficients within these ranges will cause changes in the optimal number of components to produce. Individual changes in the profit coefficients outside these ranges will not cause a change in the optimal number of components to produce (c) What are the right-hand side ranges? (Use minutes for time. If there is no upper or lower limit, enter NO LIMIT. Round your answers to the nearest Integer.) shaper availability to grinder availability
