Labors Hours Required (Hours/Unit) Department Product 1 Product 2 Hours Available Overtime Available Overtime Cost A 1 0.35 100 10 18 B 0.3 0.2 36 6 22.5 C 0.2 0.5 50 8 12 Profit Contribution/Unit 30 15 X1 X2 Production Constraints Used Available Dept A Hours Dept B Hours Dept C Hours Dept A Overtime (XA) Dept B Overtime (XB) Dept C Overtime (XC) Objective: Profit Suppose that 10, 6, and 8 hours of overtime may be scheduled in departments A, B, and C, respectively. The cost per hour of overtime is $18 in department A, $22.50 in department B, and $12 in department C. What are the optimal production quantities using the avallable overtime? What is the new profit? 1) Product 1 - ? 2) Prdouct 2 -? 3) Profit - ?

Labors Hours Required (Hours/Unit) Department Product 1 Product 2 Hours Available Overtime Available Overtime Cost A 1 0.35 100 10 18 B 0.3 0.2 36 6 22.5 C 0.2 0.5 50 8 12 Profit Contribution/Unit 30 15 X1 X2 Production Constraints Used Available Dept A Hours Dept B Hours Dept C Hours Dept A Overtime (XA) Dept B Overtime (XB) Dept C Overtime (XC) Objective: Profit Suppose that 10, 6, and 8 hours of overtime may be scheduled in departments A, B, and C, respectively. The cost per hour of overtime is $18 in department A, $22.50 in department B, and $12 in department C. What are the optimal production quantities using the avallable overtime? What is the new profit? 1) Product 1 - ? 2) Prdouct 2 -? 3) Profit - ?

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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9780357033791

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Labors Hours Required (Hours/Unit)
Department	Product 1	Product 2	Hours Available	Overtime Available	Overtime Cost
A	1	0.35	100	10	18
B	0.3	0.2	36	6	22.5
C	0.2	0.5	50	8	12

Profit Contribution/Unit	30	15
	X₁	X₂
Production

Constraints	Used		Available
Dept A Hours
Dept B Hours
Dept C Hours
Dept A Overtime (X_A)
Dept B Overtime (X_B)
Dept C Overtime (X_C)

Objective:
Profit