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Ter nas an option to produce six styles of cell phones. Each of the me, in minutes, on three types of electronic testing equipment, as shown in the ta e. The first two test devices are each available for 120 hours per week. Test dev. maintenance and may be used only for 100 hours each week. The market for al e manufacturer believes that it can sell as many cell phones as it can manufactur es the revenues and material costs for each type of phone. variable labor costs are $15 per hour for test device 1, $12 per hour for test dev st device 3. Determine the product mix that would maximize profits. Formulate the

Ter nas an option to produce six styles of cell phones. Each of the me, in minutes, on three types of electronic testing equipment, as shown in the ta e. The first two test devices are each available for 120 hours per week. Test dev. maintenance and may be used only for 100 hours each week. The market for al e manufacturer believes that it can sell as many cell phones as it can manufactur es the revenues and material costs for each type of phone. variable labor costs are $15 per hour for test device 1, $12 per hour for test dev st device 3. Determine the product mix that would maximize profits. Formulate the

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Please solve this problem using the table
### Production Planning for Cell Phones An electronics manufacturer has the capability to produce six styles of cell phones. The production of each style requires time, measured in minutes, on three different types of electronic testing equipment. The details are illustrated in the table at the bottom of this page. Two of these testing devices are available for 120 hours per week each. The third testing device requires more preventive maintenance and is only available for 100 hours per week. The manufacturer is confident it can sell as many cell phones as it can produce, so there is no limit on the market demand. Additionally, the table summarizes both the revenue and material costs associated with each type of phone. The variable labor costs are: - $15 per hour for test device 1 - $12 per hour for test device 2 - $18 per hour for test device 3 **Goal:** Determine the product mix that will maximize profits. Formulate this problem as a Linear Programming (LP) model and find the solution using Excel. #### Table Explanation: The table mentioned in this context would typically include: 1. **Time Required (minutes)**: The time each style of cell phone takes on each of the three testing devices. 2. **Revenue**: The income generated from selling each style of cell phone. 3. **Material Cost**: The cost of materials needed to produce each style of cell phone. Using this information, you can set up a linear programming model in Excel to determine the optimal product mix, taking into account constraints like time availability and variable labor costs with the objective of maximizing profits.
Transcribed Image Text:### Production Planning for Cell Phones An electronics manufacturer has the capability to produce six styles of cell phones. The production of each style requires time, measured in minutes, on three different types of electronic testing equipment. The details are illustrated in the table at the bottom of this page. Two of these testing devices are available for 120 hours per week each. The third testing device requires more preventive maintenance and is only available for 100 hours per week. The manufacturer is confident it can sell as many cell phones as it can produce, so there is no limit on the market demand. Additionally, the table summarizes both the revenue and material costs associated with each type of phone. The variable labor costs are: - $15 per hour for test device 1 - $12 per hour for test device 2 - $18 per hour for test device 3 **Goal:** Determine the product mix that will maximize profits. Formulate this problem as a Linear Programming (LP) model and find the solution using Excel. #### Table Explanation: The table mentioned in this context would typically include: 1. **Time Required (minutes)**: The time each style of cell phone takes on each of the three testing devices. 2. **Revenue**: The income generated from selling each style of cell phone. 3. **Material Cost**: The cost of materials needed to produce each style of cell phone. Using this information, you can set up a linear programming model in Excel to determine the optimal product mix, taking into account constraints like time availability and variable labor costs with the objective of maximizing profits.
### Problem 3-6 #### Solution Table: | | Smartphone | Blueberry | MoPhone | BoldPhone | LuxPhone4G | Tap3G | |--------------------|------------|-----------|---------|-----------|------------|-------| | Solution value | | | | | | | | Revenue | | | | | | | | Material cost | | | | | | | | Labor cost | | | | | | | | Profit | | | | | | | #### Cost Analysis: | Constraints | Cost | |--------------------|---------------------------------| | **Test device #1** | **LHS** (Left Hand Side) | | **Test device #2** | **Sign** (Comparison Operation) | | **Test device #3** | **RHS** (Right Hand Side) | ### Explanation of Diagrams and Graphs: This table is a template for analyzing and solving an optimization problem, likely related to operations research or linear programming. Here’s a breakdown of each component: - **Columns for Products**: The columns titled "Smartphone", “Blueberry”, “MoPhone”, “BoldPhone”, “LuxPhone4G”, and “Tap3G” represent different products or devices being analyzed. - **Solution Value**: This row is where the variable values for each product are written after solving the optimization problem. - **Revenue, Material Cost, Labor Cost, Profit**: These rows are meant to capture the respective figures for each of the products listed in the columns. - **Constraints Section**: - "Test device #1", "Test device #2", and "Test device #3" represent different constraints or conditions that the solution must satisfy. - **LHS** (Left Hand Side), **Sign**, and **RHS** (Right Hand Side) columns are used to formulate and display the constraints mathematically. The colors in the table: - **Yellow**: Highlights the solution value row. - **Green**: Emphasizes the profit row. - **Blue**: Used for the LHS cells under constraints, indicating these are input areas for constraint values. This table serves as a structured format for identifying how different products perform under various conditions and constraints, and assists in determining the optimal solution
Transcribed Image Text:### Problem 3-6 #### Solution Table: | | Smartphone | Blueberry | MoPhone | BoldPhone | LuxPhone4G | Tap3G | |--------------------|------------|-----------|---------|-----------|------------|-------| | Solution value | | | | | | | | Revenue | | | | | | | | Material cost | | | | | | | | Labor cost | | | | | | | | Profit | | | | | | | #### Cost Analysis: | Constraints | Cost | |--------------------|---------------------------------| | **Test device #1** | **LHS** (Left Hand Side) | | **Test device #2** | **Sign** (Comparison Operation) | | **Test device #3** | **RHS** (Right Hand Side) | ### Explanation of Diagrams and Graphs: This table is a template for analyzing and solving an optimization problem, likely related to operations research or linear programming. Here’s a breakdown of each component: - **Columns for Products**: The columns titled "Smartphone", “Blueberry”, “MoPhone”, “BoldPhone”, “LuxPhone4G”, and “Tap3G” represent different products or devices being analyzed. - **Solution Value**: This row is where the variable values for each product are written after solving the optimization problem. - **Revenue, Material Cost, Labor Cost, Profit**: These rows are meant to capture the respective figures for each of the products listed in the columns. - **Constraints Section**: - "Test device #1", "Test device #2", and "Test device #3" represent different constraints or conditions that the solution must satisfy. - **LHS** (Left Hand Side), **Sign**, and **RHS** (Right Hand Side) columns are used to formulate and display the constraints mathematically. The colors in the table: - **Yellow**: Highlights the solution value row. - **Green**: Emphasizes the profit row. - **Blue**: Used for the LHS cells under constraints, indicating these are input areas for constraint values. This table serves as a structured format for identifying how different products perform under various conditions and constraints, and assists in determining the optimal solution
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