Boise Lumber has decided to enter the lucrative prefabricated housing business. Initially, it plans to offer three models:standard, deluxe, and luxury. Each house is prefabricated and partially assembled in the factory, and the final assembly iscompleted on site. The dollar amount of building material required, the amount of labor required in the factory forprefabrication and partial assembly, the amount of on-site labor required, and the profit per unit are as follows.Luxury Model$10,000Standard ModelDeluxe Model$8,000$6,000MaterialFactory Labor (hr)On-Site Labor (hr)240220200210300180Profit$3,400$4,000$5,000For the first year's production, a sum of $8,200,000 is budgeted for the building material; the number of labor-hoursavailable for work in the factory is not to exceed 218,000 hr; and the amount of labor for on-site work is to be less than orequal to 240,000 labor-hours. Determine how many houses of each type Boise should produce to maximize its profit fromthis new venture.housesstandard modelhousesdeluxe modelhousesluxury model

Answered: Boise Lumber has decided to enter the…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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Blue Ridge Hot Tubs manufactures and sells two models of hot tubs: the Aqua-Spa and the Hydro-Lux. Howie Jones, the owner and manager of the company, needs to decide how many of each type of hot tub to produce during his next production cycle. Howie buys prefabricated fiberglass hot tub shells from a local supplier and adds the pump and tubing to the shells to create his hot tubs. (This supplier has the capacity to deliver as many hot tub shells as Howie needs.) Howie installs the same type of pump into both hot tubs. He will have only 200 pumps available during his next production cycle. From a manufacturing standpoint, the main difference between the two models of hot tubs is the amount of tubing and labor required. Each Aqua-Spa requires 9 hours of labor and 12 feet of tubing. Each Hydro-Lux requires 6 hours of labor and 16 feet of tubing. Howie expects to have 1,566 production labor hours and 2,880 feet of tubing available during the next production cycle. Howie earns a profit of…
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