Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins of $400 and $800, respectively. Assume initially that Patz can sell all that is produced of either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 400 assembly hours per week. Required: 1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint. Objective function: Max Z = $400 A + $800 B Subject to: fill in the blank 1 A + fill in the blank 2 B ≤ fill in the blank 3 2. Identify the optimal amount that should be produced of each machine part. If none of the components should be produced, enter "0" for your answer. Component A fill in the blank 4 units Component B fill in the blank 5 units Identify the total contribution margin associated with this mix. $fill in the blank 6
Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins of $400 and $800, respectively. Assume initially that Patz can sell all that is produced of either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 400 assembly hours per week.
Required:
1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint.
Objective function: Max Z = $400 A + $800 B
Subject to: fill in the blank 1 A + fill in the blank 2 B ≤ fill in the blank 3
2. Identify the optimal amount that should be produced of each machine part. If none of the components should be produced, enter "0" for your answer.
| Component A | fill in the blank 4 | units |
| Component B | fill in the blank 5 | units |
Identify the total contribution margin associated with this mix.
$fill in the blank 6
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