XYZ manufactures tables and chairs. A table requires 40 kg of wood and a chair requires 30 kg of wood. Wood may be purchased at a cost of 1 TL/kg and 40,000 kg of wood are available for purchase. It takes 2 hours ofskilled labour to manufacture an unfinished table or an unfinished chair. Three more hours of skilled labour will turn an unfinished table into a finished table, and 2 more hours of skilled labour will turn an unfinished chairinto a finished chair. A total of 6000 hours of skilled labour are available (and have already been paid for). All furniture produced can be sold at the following unit prices: unfinished table: 70 TL; finished table: 140 TL;unfinished chair: 60 TL; finished chair: 110 TL. Formulate an LP that will maximize the contribution to profit from manufacturing tables and chairs.

The objective of the question is to formulate a Linear Programming problem that will maximize the…

Answered: XYZ manufactures tables and chairs. A…

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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A furniture company manufactures desks and chairs. Each desk requires 29 hours to manufacture and contributes $400 to profit, and each chair requires 19 hours to manufacture and contributes $250 to profit. Due to marketing restrictions, a total of 2000 hours are available. Use Solver to maximize the company’s profit. What is the maximum profit? How many desks and chairs should the company manufacture? Of the 2000 available hours, how many hours will be used?
Texteriles Company creates different types of bolts of cloth. These bolts of cloth are made on the same machinery. The textile machines have the capacity of 3,600 hours per month. Texteriles is considering producing three different types of cloth: denim, chenille, and gauze, with contribution margins per bolt of $14, $22, and $9, respectively. Texteriles knows it can sell only a total of 6,000 bolts of denim, 2,000 bolts of chenille, and/or 1,200 bolts of gauze. A bolt of each type of cloth requires a different amount of machine time as follows: denim takes 0.5 machine-hours, chenille takes 1 machine-hour, and gauze takes 0.3 machine-hours. What combination of products will maximize the profits of Texteriles? Combination of Products bolts of gauze bolts of denim bolts of chenille Total contribution Contribution $ 0
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