Business, 12.06.2020 01:57 nmg9

Quality Air Conditioning manufactures three home air conditioners: an economy model, a standard model, and a deluxe model. The profits per unit are $63, $95, and $135, respectively. The production requirements per unit are as follows: Number of Fans Number of Cooling Coils Manufacturing Time (hours)
Economy 1 1 8
Standard 1 2 12
Deluxe 1 4 14
For the coming production period, the company has 200 fan motors, 320 cooling coils, and 2400 hours of manufacturing time available. How many economy models (E), standard models (S), and deluxe models (D) should the company produce in order to maximize profit? The linear programming model for the problem is as follows:
Max 63E + 95S + 135D
s. t.
1E + 1S + 1D ≤ 200 Fan motors
1E + 2S + 4D ≤ 320 Cooling coils
8E + 12S + 14D ≤ 2400 Manufacturing time
E, S, D ≥ 0
The computer solution is shown in the figure below.
Optimal Objective Value = 16440.00000
Variable Value Reduced Cost
E 80.00000 0.00000
S 120.00000 0.00000
D 0.00000 -24.00000
Constraint Slack/Surplus Dual Value
Fan motors 0.00000 31.00000
Cooling coils 0.00000 32.00000
Manufacturing time 320.00000 0.00000
Variable Objective Coefficient Allowable Increase Allowable Decrease
E 63.00000 12.00000 15.50000
S 95.00000 31.00000 8.00000
D 135.00000 24.00000 Infinite
Constraint RHS Value Allowable Increase Allowable Decrease
Fan motors 200.00000 80.00000 40.00000
Cooling coils 320.0000 80.00000 120.00000
Manufacturing time 2400.00000 Infinite 320.00000
What is the optimal solution, and what is the value of the objective function? If required, round your answers to the nearest whole number.
Optimal Solution
Economy models (E)
Standard models (S)
Deluxe models (D)
Value of the objective function $
Which constraints are binding?
Fan motors: Binding
Cooling coils: Binding
Manufacturing time: Non binding
Which constraint shows extra capacity? How much? If constraint shows no extra capacity, enter 0 as number of units. If required, round your answers to the nearest whole number.
Constraints Extra capacity Number of units
Fan motors No ?
Cooling coils No ?
Manufacturing time Yes ?
If the profit for the deluxe model were increased to $150 per unit, would the optimal solution change?
The optimal solution would not change because the profit of the deluxe model can vary from $0 to $159 . $150 is in this range without the optimal solution changing.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 15:00

Beagle autos is known for its affordable and reliable brand of consumer vehicles. because its shareholders expect to see an improved rate of growth in the coming years, beagle's executives have decided to diversify the company's range of products so that at least 40 percent of the firm's revenue is generated by new business units. however, the company's resources, capabilities, and competencies are limited to producing other forms of motorized vehicles, such as motorcycles and all-terrain vehicles (atvs). which type of corporate diversification strategy should beagle pursue?

Answers: 1

Answer

Business, 22.06.2019 16:00

Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?

Answers: 1

Answer

Business, 22.06.2019 17:00

Afinancing project has an initial cash inflow of $42,000 and cash flows of −$15,600, −$22,200, and −$18,000 for years 1 to 3, respectively. the required rate of return is 13 percent. what is the internal rate of return? should the project be accepted?

Answers: 1

Answer

Business, 22.06.2019 21:00

Roberto and reagan are both 25 percent owner/managers for bright light inc. roberto runs the retail store in sacramento, ca, and reagan runs the retail store in san francisco, ca. bright light inc. generated a $125,000 profit companywide made up of a $75,000 profit from the sacramento store, a ($25,000) loss from the san francisco store, and a combined $75,000 profit from the remaining stores. if bright light inc. is an s corporation, how much income will be allocated to roberto?

Answers: 2

Answer

You know the right answer?

Quality Air Conditioning manufactures three home air conditioners: an economy model, a standard mode...

Questions