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?
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?
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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Question
| 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
5) How much would you be willing to pay per hour of overtime in each department?
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