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 partiallyassembled in the factory, and the final assembly is completed on site. The dollar amount of building material required, the amount of labor required in the factory for prefabrication and partialassembly, the amount of on-site labor required, and the profit per unit are as follows.Standard ModelLuxury Model$10,000Deluxe ModelMaterial$6,000$8,000Factory Labor (hr)On-Site Labor (hr)240220200180210300Profit$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-hours available for work in the factory is not to exceed 215,000 hr; and the amount oflabor for on-site work is to be less than or equal to 237,000 labor-hours. Determine how many houses of each type Boise should produce to maximize its profit from this new venture.standard modelhousesdeluxe modelhousesluxury modelhouses

To maximize the profit, the standard houses, deluxe houses and luxury houses should produce to…

Answered: Boise Lumber has decided to enter the…

Calculus: Early Transcendentals

8th Edition

ISBN:9781285741550

Author:James Stewart

Publisher:James Stewart

Chapter1: Functions And Models

Section: Chapter Questions

Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...

See similar textbooks

Similar questions

Trans Global Tractor Trailers has decided to spend up to $2,700,000 on a fleet of new trucks, and it is considering three models: the Gigahaul, which has a capacity of 6,000 cubic feet and is priced at $60,000; the Megahaul, with a capacity of 5,000 cubic feet, priced at $50,000; and the Picohaul, with a capacity of 2,000 cubic feet, priced at $40,000. The anticipated annual revenues are $500,000 for each new truck purchased (regardless of size). Trans Global would like a total capacity of up to 234,000 cubic feet and feels that it cannot provide drivers and maintenance for more than 54 trucks.How many of each should it purchase to maximize annual revenue? (Gigahaul, Megahaul, Picohaul) = trucks What is the largest possible revenue it can make? $
Teal Inc., manufactures ice tea and would like to increase its market share in the North. In order to do so, Teal has decided to locate a new factory in the Cedar Rapid area. Teal will either buy or lease a site depending upon which is more advantageous. The site location committee has narrowed down the available sites to the following three buildings: Building A: Purchase for a cash price of $1,533,000, useful life 26 years. Building B: Lease for 26 years with annual lease payments of $126,000 being made at the beginning of the year. Building C: Purchase for $1,965,000 cash. This building is larger than needed; however, the excess space can be sublet for 26 years at a net annual rental of $20,700. Rental payments will be received at the end of each year. Teal Inc. has no aversion to being a landlord. Click here to view factor tables In which building would you recommend that Teal Inc. locate, assuming a 12% cost of funds? (Round factor values to 5 decimal places, e.g. 1.25124 and…
A large defense contractor is considering making a specialized investment in a facility to make helicopters. The firm currently has a contract with the government, which, over the lifetime of the contract, is worth 100mn euro to the firm. It is considering building a new production plant for these helicopters; doing so will reduce the production costs to the company, increasing the value of the contract from 100mn euro to 200mn euro. The cost of the plant will be 60mn euro. However, there is the possibility that the government will cancel the contract. If that happens, the value of the contract will fall to zero. The problem (from the company’s point of view) is that it will only find out about the cancellation after it completes the new plant. At this point, it appears that the probability that the government will cancel the contract is 0.45. Draw a decision tree reflecting the decisions and find the equilibrium.
A group of engineers is interested in forming a company to produce smoke detectors. They have developed a design and estimate that variable costs per unit, including materials, labor, and marketing costs, are $45.5. The fixed cost associated with the formation operation and management of the company and the purchase of equipment and machinery total $400000. They estimate that the selling price will be $80 per detector a) Determine the number of the smoke detector which must be sold for the firm to break even on the venture. b}Preliminary marketing data indicate that the firm can expect to sell approximately 40,000 smoke detectors over the life of the project Determine expected profit at this level of output.
A florist provides fresh flowers to shops in Wollongong. At present she has one nursery in Goulburn with capacity 9000 units a year. The florist is considering opening shops in Canberra and Sydney, and has found three potential nursery sites at Wagga, Orange and Bathurst. The transportation tableau below summarises the projected nursery capacities (units), the cost per unit of shipping from each nursery to each destination (dollars), and the demand (units) for the coming year. j=1 j=2 j=3 Sydney Capacities Wollongong Canberral 5 i=1 Goulburn 12 9000 i=2 Wagga 7 10 4000 i=3 Orange 4 7000 i=4 Bathurst 11000 Demand 11000 5000 8000 There are further constraints on how the nurseries can be located: • If a nursery is located in Wagga, another must be located in Bathurst and vice- versa. • One nursery can be located in Orange or Bathurst, but not both. Suppose that the costs of establishing new nurseries are Wagga $180,000 Orange $160,000 Bathurst $270,000 The goal is to develop a 0-1…
Suppose that a company needs 1,500,000 items during a year and that preparation for each production run costs $900. Suppose also that it costs $14 to produce each item and $3 per year to store an item. Use the inventory cost model to find the number of items in each production run so that the total costs of production and storage are minimized.
Hoosier Power needs to determine a capacity expansion plan to meet Bloomington’s power needs for thenext 20 years. The current capacity is 5000 kwh. The demand for the current year is 4000 kwh, and demand is expected to increase by 1000 kwh in each succeeding year. At the beginning of each year, Hoosier Power must determine the amount of capacity to add, given the following inputs: ■ Any year in which capacity is added, a fixed cost of $120,000 is incurred plus a cost of $120 per kwh of capacity. ■ At most 10,000 kwh of capacity can be added in a single year. ■ It costs $25 per year to maintain a unit of capacity. ■ It costs $12 per year to produce a kwh. ■ If production does not meet demand, a shortage cost of $80 per kwh short is incurred. Develop a linear integer model to help Hoosier Power minimize its costs for the next 20 years.

Recommended textbooks for you

Calculus: Early Transcendentals

Calculus

ISBN:

9781285741550

Author:

James Stewart

Publisher:

Cengage Learning

Thomas' Calculus (14th Edition)

Calculus

ISBN:

9780134438986

Author:

Joel R. Hass, Christopher E. Heil, Maurice D. Weir

Publisher:

PEARSON

Calculus: Early Transcendentals (3rd Edition)

Calculus

ISBN:

9780134763644

Author:

William L. Briggs, Lyle Cochran, Bernard Gillett, Eric Schulz

Publisher:

PEARSON

Calculus: Early Transcendentals

Calculus

ISBN:

9781285741550

Author:

James Stewart

Publisher:

Cengage Learning

Thomas' Calculus (14th Edition)

Calculus

ISBN:

9780134438986

Author:

Joel R. Hass, Christopher E. Heil, Maurice D. Weir

Publisher:

PEARSON

Calculus: Early Transcendentals (3rd Edition)

Calculus

ISBN:

9780134763644

Author:

William L. Briggs, Lyle Cochran, Bernard Gillett, Eric Schulz

Publisher:

PEARSON

Calculus: Early Transcendentals

Calculus

ISBN:

9781319050740

Author:

Jon Rogawski, Colin Adams, Robert Franzosa

Publisher:

W. H. Freeman

Precalculus

Calculus

ISBN:

9780135189405

Author:

Michael Sullivan

Publisher:

PEARSON

Calculus: Early Transcendental Functions

Calculus

ISBN:

9781337552516

Author:

Ron Larson, Bruce H. Edwards

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS