Answered: How will the company maximize its…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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A company which manufactures canoes employs 120 employees, each of whom working 30 hours per week. Half of them work in the carpenter department, 20 persons in the plastics department, and the rest of them at the completion department. The company manufactures the simple canoes with net unit profit € 7 and the luxury canoes with corresponding profit € 10. A simple canoe requires 4.5 hours in the carpenter department and two hours in each of the other two departments. The working hours for each luxury canoe are 5, 1 and 4 at the carpenter department, plastics department and completion department respectively. Marketing calculations have shown that not less than 1/3 and not more than 2/3 of the total number of the canoes should be luxurious. How will the company maximize its overall net profit?

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