DreamInflate is a balloon manufacturing company. Balloon manufacturing consists of sevenwork stations, each performing a single step as indicated in the table below. There are fiveworkers manned for the seven work stations as shown. Assume the workers are paid $15 perWorkerTask SequenceProcessing Time (secs/balloon)TaskDye productionElectrochargingDipping (Cold and Hot)Mortar DippingBalloon inflation and delaltexingVulcanizationInspection/Testing130w120335W225W330W46.45W5740hour. Each balloon pack is sold for $6 and has a variable cost of $1. The company has fixedcosts of $200 per hour. There is more demand than the overall production system can provide.Based on the information provided, answer the following questions:• What is the cost of direct labor for balloons?• How much profit does DreamInflate make every hour? (note that the cost of direct laboris also a variable cost).What would the profit of DreamInflate be if the variable costs were 10 percent lower?

Given: No. of workers = 5Labor charge = $ 15/ hourSelling cost = $ 6Variable cost = $…

Answered: DreamInflate is a balloon manufacturing…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter4: Linear Programming Models

Section4.8: Data Envelopment Analysis (dea)

Problem 42P

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