The Westfall Company has a contract to produce 10,000 garden hoses for a large discount chain.Westfall has four different machines that can produce this kind of hose. Because these machines arefrom different manufacturers and use different technologies, their specifications are not the same.Machine1234Fixed Cost toSet Up$750$500$1000$300Variable CostPer Hose$1.25$1.50$1.00$2.00Capacity(units)6000750040005000If machine 2 is used, machine 3 must be used also. However, if machine 3 is used, machine 2 need NOTbe used.The company wants to minimize the total cost of fulfill the contract. Please formulate a mixed integerlinear programming problem to decide which machine(s) to use and how many garden hoses toproduce on each machine if the machine is used.The correct set of decision variables is:

This problem requires two different kinds of decision variables. Clearly define each…

If machine 2 is used, machine 3 must be used also. However, if machine 3 is used, machine 2 need NO be used. The company wants to minimize the total cost of fulfill the contract. Please formulate a mixed integer linear programming problem to decide which machine(s) to use and how many garden hoses to produce on each machine if the machine used.

If machine 2 is used, machine 3 must be used also. However, if machine 3 is used, machine 2 need NO be used. The company wants to minimize the total cost of fulfill the contract. Please formulate a mixed integer linear programming problem to decide which machine(s) to use and how many garden hoses to produce on each machine if the machine used.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

The Westfall Company has a contract to produce 10,000 garden hoses for a large discount chain.
Westfall has four different machines that can produce this kind of hose. Because these machines are
from different manufacturers and use different technologies, their specifications are not the same.
Machine
1
2
3
4
Fixed Cost to
Set Up
$750
$500
$1000
$300
Variable Cost
Per Hose
$1.25
$1.50
$1.00
$2.00
Capacity
(units)
6000
7500
4000
5000
If machine 2 is used, machine 3 must be used also. However, if machine 3 is used, machine 2 need NOT
be used.
The company wants to minimize the total cost of fulfill the contract. Please formulate a mixed integer
linear programming problem to decide which machine(s) to use and how many garden hoses to
produce on each machine if the machine is used.
The correct set of decision variables is:

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