menu
bartleby
search
close search
Hit Return to see all results
close solutoin list

Burnett Company produces two types of gears: Model 12 and Model 15. Market conditions limit the number of each gear that can be sold. For Model 12 no more than 15,000 units can be sold, and for Model 15 no more than 40,000 units. Each gear must be notched by a special machine. Burnett owns eight machines that together provide 60,000 hours of machine time per year. Each unit of Model 12 requires three hours of machine time, and each unit of Model 15 requires 45 minutes or 0.75 hour of machine time. The unit contribution for Model 12 is $60 and for Model 15 is $30. Burnett wants to identify the product mix that will maximize total contribution margin. Required: 1. Formulate Burnett’s problem as a linear programming model. 2. Solve the linear programming model in Requirement 1. 3. Identify which constraints are binding and which are loose. Also, identify the constraints as internal or external.

BuyFindarrow_forward

Cornerstones of Cost Management (C...

4th Edition
Don R. Hansen + 1 other
Publisher: Cengage Learning
ISBN: 9781305970663

Solutions

Chapter
Section
BuyFindarrow_forward

Cornerstones of Cost Management (C...

4th Edition
Don R. Hansen + 1 other
Publisher: Cengage Learning
ISBN: 9781305970663
Chapter 20, Problem 24P
Textbook Problem
27 views

Burnett Company produces two types of gears: Model 12 and Model 15. Market conditions limit the number of each gear that can be sold. For Model 12 no more than 15,000 units can be sold, and for Model 15 no more than 40,000 units. Each gear must be notched by a special machine. Burnett owns eight machines that together provide 60,000 hours of machine time per year. Each unit of Model 12 requires three hours of machine time, and each unit of Model 15 requires 45 minutes or 0.75 hour of machine time. The unit contribution for Model 12 is $60 and for Model 15 is $30. Burnett wants to identify the product mix that will maximize total contribution margin.

Required:

  1. 1. Formulate Burnett’s problem as a linear programming model.
  2. 2. Solve the linear programming model in Requirement 1.
  3. 3. Identify which constraints are binding and which are loose. Also, identify the constraints as internal or external.

1.

To determine

Ascertain the formula for a linear programming model of company B.

Explanation of Solution

Contribution margin: Contribution margin is a measurement of performance where only revenue and variable costs are taken into consideration. Hence, this measurement is useful in the evaluation of the probable outcomes of decisions including pricing decisions and other marketing strategies that affect primarily revenue and variable costs.

Assume that X denotes Model 12 and Y denotes Model 15:

Objective function:

Max Z=$60X+$30Y

Linear programming model:

3X+0.75Y60,000 (1)             &#

2.

To determine

Calculate the linear programming model in Requirement 1.

3.

To determine

Identify the constraints that are binding and that are loose and also state whether the identified constraints are internal or external constraints.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 20 Solutions

Cornerstones of Cost Management (Cornerstones Series)
Show all chapter solutions
add
Ch. 20 - What is a constraint? An internal constraint? An...Ch. 20 - Explain the procedures for graphically solving a...Ch. 20 - Define and discuss the three measures of...Ch. 20 - Explain how lowering inventory produces better...Ch. 20 - What are the five steps that TOC uses to improve...Ch. 20 - Thomas Corporation produces heating units. The...Ch. 20 - Sterling Corporation has an EOQ of 5,000 units....Ch. 20 - Patz Company produces two types of machine parts:...Ch. 20 - Fisher Company produces two types of components...Ch. 20 - See Cornerstone Exercise 20.4. Fisher Company has...Ch. 20 - Ottis, Inc., uses 640,000 plastic housing units...Ch. 20 - Ottis, Inc., uses 640,000 plastic housing units...Ch. 20 - Melchar Company uses 78,125 pounds of oats each...Ch. 20 - Shorts Company manufactures backpacks. A...Ch. 20 - Morrison Manufacturing produces casings for sewing...Ch. 20 - Morrison Manufacturing produces casings for sewing...Ch. 20 - Refer to Exercise 20.10. Assume the economic lot...Ch. 20 - Eyring Manufacturing produces a component used in...Ch. 20 - Hales Company produces a product that requires two...Ch. 20 - Many companies have viewed JIT as a panaceaa...Ch. 20 - Behar Company makes three types of stainless steel...Ch. 20 - Duckstein, Inc., manufactures two types of...Ch. 20 - Which of the following describes the economic...Ch. 20 - The economic order quantity (EOQ) for Part X15 is...Ch. 20 - A JIT inventory management system maintains which...Ch. 20 - For the theory of constraints, which of the...Ch. 20 - A dedicated pharmaceutical plant uses the theory...Ch. 20 - Bateman Company produces helmets for drivers of...Ch. 20 - Burnett Company produces two types of gears: Model...Ch. 20 - Taylor Company produces two industrial cleansers...Ch. 20 - Desayuno Products, Inc., produces cornflakes and...Ch. 20 - Calen Company manufactures and sells three...Ch. 20 - Confer Company produces two different metal...Ch. 20 - Pratt Company produces two replacement parts for a...Ch. 20 - Bountiful Manufacturing produces two types of bike...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions add
Why are accruals called spontaneous sources of funds, what are their costs, and why dont firms use more of them...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

What distinguishes a B2B from a B2C e-business model?

Foundations of Business (MindTap Course List)

What is goal congruence?

Accounting Information Systems