PROBLEM 4 The Pee Tool Shop has four heavy presses it uses to stamp out prefabricated metal covers and housings for electronic consumer products. All four presses operate differently and are of different sizes. Currently the firm has a contract to produce three products. The contract calls for 400 units of product 1; 570 units of product 2; and 320 units of product 3. The time (in minutes) required for each product to be produced on each machine is as follows: Product 1 2 3 1 35 40 38 Product 1 2 3 Machine 1 P78 67 84 2 41 36 37 Machine 1 is available for 150 hours, machine 2 for 240 hours, machine 3 for 200 hours, and machine 4 for 250 hours. The products also result in different profits, according to the machine they are produced on, because of time, waste, and operating cost. The profit per unit per machine for each product is summarized as follows: Machine 3 34 2 P78 89 81 32 33 3 P82 4 39 43 40 92 90 4 P79 63 58 The company wants to know how many units of each product to produce on each machine to maximize profit. Solve the model by using the computer.

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter18: Activity-based Costing
Section: Chapter Questions
Problem 3MAD: Labor classification trade-off Skidmore Electronics manufactures consumer electronic products. The...
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PROBLEM 4
The Pee Tool Shop has four heavy presses it uses to stamp out prefabricated metal covers and housings
for electronic consumer products. All four presses operate differently and are of different sizes.
Currently the firm has a contract to produce three products. The contract calls for 400 units of product
1; 570 units of product 2; and 320 units of product 3. The time (in minutes) required for each product
to be produced on each machine is as follows:
Product
1
2
3
1
35
Product
1
2
3
40
38
1
P78
Machine
67
84
2
41
36
37
Machine 1 is available for 150 hours, machine 2 for 240 hours, machine 3 for 200 hours, and machine
4 for 250 hours. The products also result in different profits, according to the machine they are
produced on, because of time, waste, and operating cost. The profit per unit per machine for each
product is summarized as follows:
Machine
3
34
32
33
2
P78
89
81
4
39
43
40
3
P82
92
90
4
P79
63
58
The company wants to know how many units of each product to produce on each machine to
maximize profit. Solve the model by using the computer.
Transcribed Image Text:PROBLEM 4 The Pee Tool Shop has four heavy presses it uses to stamp out prefabricated metal covers and housings for electronic consumer products. All four presses operate differently and are of different sizes. Currently the firm has a contract to produce three products. The contract calls for 400 units of product 1; 570 units of product 2; and 320 units of product 3. The time (in minutes) required for each product to be produced on each machine is as follows: Product 1 2 3 1 35 Product 1 2 3 40 38 1 P78 Machine 67 84 2 41 36 37 Machine 1 is available for 150 hours, machine 2 for 240 hours, machine 3 for 200 hours, and machine 4 for 250 hours. The products also result in different profits, according to the machine they are produced on, because of time, waste, and operating cost. The profit per unit per machine for each product is summarized as follows: Machine 3 34 32 33 2 P78 89 81 4 39 43 40 3 P82 92 90 4 P79 63 58 The company wants to know how many units of each product to produce on each machine to maximize profit. Solve the model by using the computer.
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