Labors Hours Required (Hours/Unit)               Department Product 1 Product 2 Hours Available             A 1 0.35 100             B 0.3 0.2 36             C 0.2 0.5 50                                 Profit Contribution/Unit 30 15                 X1 X2               Production                                       Constraints Used   Available             Dept A Hours                    Dept B Hours                   Dept C Hours                                       Objective:     Profit                   1) How many units of product 1 should Hartman produce to get the most profit?   2) How many units of product 2 should Hartman produce to get the most profit?   3) How much profit will Hartman make if they produce the optimal number of product 1 and product 4) In computing the profit contribution per unit, management does not deduct labor costs because they are considered fixed for the upcoming planning period. However, suppose that overtime can be scheduled in some of the departments. Which departments would you recommend scheduling for overtime? 5) How much would you be willing to pay per hour of overtime in each department?

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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Labors Hours Required (Hours/Unit)              
Department Product 1 Product 2 Hours Available            
A 1 0.35 100            
B 0.3 0.2 36            
C 0.2 0.5 50            
                   
Profit Contribution/Unit 30 15              
  X1 X2              
Production                  
                   
Constraints Used   Available            
Dept A Hours                   
Dept B Hours                  
Dept C Hours                  
                   
Objective:    
Profit                  

1) How many units of product 1 should Hartman produce to get the most profit?

 

2) How many units of product 2 should Hartman produce to get the most profit?

 

3) How much profit will Hartman make if they produce the optimal number of product 1 and product

4) In computing the profit contribution per unit, management does not deduct labor costs because they are considered fixed for the upcoming planning period. However, suppose that overtime can be scheduled in some of the departments. Which departments would you recommend scheduling for overtime?

5) How much would you be willing to pay per hour of overtime in each department?

 

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ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing