Question
You work for a big car manufacturer. For the next year you have to decide how many small, medium, and large cars to manufacture. Here
You work for a big car manufacturer. For the next year you have to decide how many small, medium, and large cars to manufacture. Here is the car information:
A small car costs $10,000 to manufacture and sells for $13,000. The warehouse can store 120 of these cars (if no other cars are stored).
A medium car costs $15,000 to manufacture and sells for $21,000. The warehouse can store 60 of these cars (if no other cars are stored).
A large car costs $20,000 to manufacture and sells for $31,500. The warehouse can store 30 large cars (if no other cars are stored).
Q1: Suppose your budget is $855,000. Use optimization in Excel to calculate how many cars of each should be produced. What is the revenue? Q2: Suppose small cars now sell for $13,500. What changes in the number of cars produces and the revenue? Submit one Excel file.
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