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WarStars Ltd manufactures two small robot toys RB1 and RB2. Both toys go through the Assembly Department and Packaging Department. The available machine hours for

WarStars Ltd manufactures two small robot toys RB1 and RB2. Both toys go through the Assembly Department and Packaging Department. The available machine hours for both Assembly and Packaging departments are limited. The Assembly Department has 150 machine hours per day and the Packaging Department has 50 machine hours per day. Additional capacity cannot be obtained in the short run. The company can sell as many toys as it produces. The following data is provided:

RB1 - X

(per unit)

RB2 - Y

(per unit)

Selling price

$200

$350

Direct labour

$ 50

$ 75

Variable manufacturing overhead

$120

$175

Hours required per engine in Assembly Department

5 hours

10 hours

Hours required per engine in Packaging Department

2 hours

2 hour

Q) Graph the constraints and determine how many units of each type of robot toy should be produced at the optimal point. (5 marks)

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