A factory manufactures two products A and B on three machines X, Y, and Z. Product Arequires 10 min of machine X and 5 min of machine Y a one min of machine Z. Therequirement of product B is 6 min, 10 min and 2 min of machine X, Y and Z respectively. Theprofit contribution of products A and B are IQ. 23/- per unit and IQ. 32 /- per unitrespectively. In the coming planning period the available capacity of machines X, Y and Z are2500 min, 2000 min and 500 min respectively. Find the optimal product mix formaximizing the profit.7

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Answered: A factory manufactures two products A…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Mop and Broom Manufacturing is evaluating whetherto produce a new type of mop. Th e company is consideringthe operations requirements for the mop as well as the marketpotential. Estimates of fi xed costs per year are $40,000, and thevariable cost for each mop produced is $20.(a) If the company sells the product at a price of $25, howmany units of product have to be sold in order to breakeven? Use both the algebraic and graphical approaches.(b) If the company sells 10,000 mops at the product price of$25, what will be the contribution to profi t?
Mariah Enterprises makes a variety of consumer electronicproducts. Its camera manufacturing plant is consideringchoosing between two different processes, named Alphaand Beta, which can be used to make two component partsA and B. To make the correct decision, the managers wouldlike to compare the labor and multifactor productivity ofprocess Alpha with that of process Beta. The value of processoutput for component A and B are $175 and $140 per unit,respectively. The corresponding overhead costs are $6,000and $5,000, respectively Process Alpha Process BetaProduct A B A BOutput (units) 50 60 30 80Labor ($) $1,200 $1,400 $1,000 $2,000Material ($) $2,500 $3,000 $1,400 $3,500a. Which process, Alpha or Beta, is more productive?b. What conclusions can you draw from your analysis?
Janelle Heinke, the owner of Ha'Peppas!, is consideringa new oven in which to bake the firm's signature dish, vegetarianpizza. Oven type A can handle 20 pizzas an hour. The fixedcosts associated with oven A are $20,000 and the variable costsare $2.00 per pizza. Oven B is larger and can handle 40 pizzas anhour. The fixed costs associated with oven B are $30,000 and thevariable costs areS 1.25 per pizza. The pizzas sell for S 14 each.a) What is the break-even point for each oven?b) If the owner expects to sell9,000 pizzas, which oven should shepurchase?
Wallace Heating is attempting to estimate its costs of manufacturing heating ducts for the comingyear using the high-low method. The cost driver is number of labor hours. Wallace determines thatthe high and low costs are $25,830 and $18,414, respectively, and the values for the cost driver are3,495 and 1,958 hours, respectively. What is the variable cost per hour?
A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual machine) are as follows: Machine Cost A $ 60,000 B $ 50,000 C $ 60,000 Product forecasts and processing times on the machines are as follows: PROCCESSING TIME PER UNIT (minutes) Product AnnualDemand A B C 1 16,000 3 4 4 2 10,000 6 5 1 3 15,000 1 3 6 4 17,000 5 3 4 a. Assume that only purchasing costs are being considered. Compute the total processing time required for each machine type to meet demand, how many of each machine type would be needed, and the resulting total purchasing cost for each machine type. The machines will operate 10 hours a day, 240 days a year. (Enter total processing times as whole numbers. Round up machine quantities to the next higher whole number. Compute total purchasing costs using these rounded machine quantities. Enter the resulting total purchasing cost as a whole number. Omit the "$" sign.) Total…
A manager must decide which type of machine to buy, A, B, or C. Machine costs are as follows: Machine CostA $40,000B $30,000C $80,000Product forecasts and processing times on the machines are as follows: Processing Time per Unit (minutes) Product Annual Demand A B C 1 16000 3 4 2 2 12000 4 4 3 3 6000 5 6 4 4 30000 2 2 1 a.) Assume that machines operate 10 hours a day, 250 days a year. If we only consider purchasing costs, which machine would have the lowest total cost? b.) Assume machines operate 10 hours a day, 250 days a year. If we select machine A, how many machine A do we need? (Use common sense to decide the answer.)
This year, Druehl, Inc., will produce 57,600hot water heaters at its plant in Delaware, in order to meetexpected global demand. To accomplish this, each laborer atthe plant will work 160 hours per month. If the labor produc-tivity at the plant is 0.15 hot water heaters per labor-hour,how many laborers are employed at the plant?
c. An airline company must plan its fleet capacity and long-term schedule of aircraft usage. For oneflight segment, the average number of customers per day is 70, which represents a 65 percentageutilization rate of the equipment assigned to the flight segment. If demand is expected toincrease to 84 customers for this flight segment in three years, and management requires acapacity cushion of 25 percent, calculate the following:-i. the planned capacity requirement.ii. the maximum number of customers the flight segment can accommodate.iii. the efficiency rate of the flight segment assuming that the current effective capacity of theflight segment is 93 customers.
Mark Tuan, the Production Manager at MT Mills, can currently expect his operation to produce1000 square yards of fabric for each ton of raw cotton. Each ton of raw cotton requires 5 laborhours to process. He believes that he can buy a better-quality raw cotton, which will enable himto produce 1200 square yards per ton of raw cotton with the same labor hours.What will be the impact on productivity (measured in square yards per labor-hour) if hepurchases the higher quality raw cotton? You are required to calculate: a) Productivity for the current raw cotton? b) The new productivity if Mark Tuan use the new raw cotton. c) What is the percentage increase in productivity?
Howard Weiss, Inc., is considering building a sensitve new radiation scanning device. His managers belivee that there is a probabililty of 0.45 that the ATR Co. will come out with a competitive product. If weiss adds as assembly line for the prodcut and ATR Co. does not follow with a competitive product, Weiss's expected profit is $60,000; if Weiss adds an assembly line and ATR follows suit, Weiss still expects $15,000 profit. If Weiss adds a new plant addition and ATR does not produce a competitive product, Weiss expects a profit of $600,000; if ATR does compete for this market, Weiss expects a loss of $100,000. a) Expected value for the Add assembly line option=$39750 b) Expected value for the Build new plant option=$________ The alternative that provides Weiss the greatest expected monetary value is _________ The value of the return under this decision is _________ c) The expected value of perfect information EVPI for Weiss=$________
Collins Little Company has a staff of 4 employees, each working 8 hours per day at a rate of$20/hour. Their overhead expenses are $200/day. Collins processes and closes on 12 titleseach day. They are considering purchasing a computerized title search system that will allowthe processing of 20 titles per day. With the new system, they could cut their staff to 2employees working the same hours at the same pay, but their overhead expenses woulddouble to $400 per day.a. Compute the labor productivity with the old system (in titles / worker hour).b. Compute the labor productivity with the new system (in titles / worker hour).c. Compute the multifactor productivity with the old system (in titles / dollar).d. Compute the multifactor productivity with the new system (in titles / dollar)
Janelle Heinke, the owners of Ha'Peppas, is consid-ering a new oven in which to bake the firm's signature dish, vegetarian pizza. Oven type A can handle 20 pizzas an hour. The fixed costs associated with oven A are $20,000 and the vari-able costs are $2.00 per pizza. Oven B is larger and can handle 40 pizzas an hour. The fixed costs associated with oven B are $30,000 and the variable costs are $1.25 per pizza. The pizzas sell for $14 each. a) What is the break-even point for each oven? b) If the owner expects to sell 9,000 pizzas, which oven should she purchase? c)If the owner expects to sell 12,000 pizzas, which oven should she purchase? d) At what volume should Janelle switch ovens?

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