(3) Due to the MCO, the supplier has increased the price of the wood. The company has to absorb this cost and maintain the same selling price, and so lower the profit made for each wood-framed mirror. How would the optimal solution change (if at all) if the profit per wood-framed mirror decreases from RM60 to RM20.
(3) Due to the MCO, the supplier has increased the price of the wood. The company has to absorb this cost and maintain the same selling price, and so lower the profit made for each wood-framed mirror. How would the optimal solution change (if at all) if the profit per wood-framed mirror decreases from RM60 to RM20.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
Related questions
Question
![The Viva Mirror & Deco Company has five employees which makes three different
kinds of hand-crafted mirrors: a wood-framed, aluminum-framed and vinyl-framed
mirror. They earn RM60 for each wood-framed mirror, RM40 for each aluminum-
framed mirror and RM40 for each vinyl-framed mirror.
Fadli makes the wood frames, and can make 8 per day. Alan makes the aluminum
frames, and can make 6 per day. Selva makes vinyl frames and can make 7 per day.
Firdaus can make wood frames and aluminum frames. If he is devoted to make wood
frames, 5 per day can be made, if he is devoted to make aluminum frames, 10 per day
can be made. Alex forms and cut the glass, and can make 8 m² of glass per day. Wood
frame uses 0.8m of glass. Each aluminum frame and vinyl frame uses 1 m' of glass.
To meet the customer demand, Viva Mirror & Deco need to produce at least 5 mirrors
(regardless of types) per day. As the consultant for Viva Mirror & Deco, you need to
study this situation. As the consultant for Viva Mirror & Deco, you need to study this
situation.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbedbf83f-ce59-477f-bdc2-47d59968745d%2F35a66d3f-d43d-4342-bbfa-b4535800d6ee%2Fx95khkf_processed.png&w=3840&q=75)
Transcribed Image Text:The Viva Mirror & Deco Company has five employees which makes three different
kinds of hand-crafted mirrors: a wood-framed, aluminum-framed and vinyl-framed
mirror. They earn RM60 for each wood-framed mirror, RM40 for each aluminum-
framed mirror and RM40 for each vinyl-framed mirror.
Fadli makes the wood frames, and can make 8 per day. Alan makes the aluminum
frames, and can make 6 per day. Selva makes vinyl frames and can make 7 per day.
Firdaus can make wood frames and aluminum frames. If he is devoted to make wood
frames, 5 per day can be made, if he is devoted to make aluminum frames, 10 per day
can be made. Alex forms and cut the glass, and can make 8 m² of glass per day. Wood
frame uses 0.8m of glass. Each aluminum frame and vinyl frame uses 1 m' of glass.
To meet the customer demand, Viva Mirror & Deco need to produce at least 5 mirrors
(regardless of types) per day. As the consultant for Viva Mirror & Deco, you need to
study this situation. As the consultant for Viva Mirror & Deco, you need to study this
situation.
![(3)
Due to the MCO, the supplier has increased the price of the wood. The
company has to absorb this cost and maintain the same selling price, and
so lower the profit made for each wood-framed mirror. How would the
optimal solution change (if at all) if the profit per wood-framed mirror
decreases from RM60 to RM20.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbedbf83f-ce59-477f-bdc2-47d59968745d%2F35a66d3f-d43d-4342-bbfa-b4535800d6ee%2Fc8ppfu9_processed.png&w=3840&q=75)
Transcribed Image Text:(3)
Due to the MCO, the supplier has increased the price of the wood. The
company has to absorb this cost and maintain the same selling price, and
so lower the profit made for each wood-framed mirror. How would the
optimal solution change (if at all) if the profit per wood-framed mirror
decreases from RM60 to RM20.
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