The management of Hartman Company is trying to determine the amount of each of two products...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The management of Hartman Company is trying to determine the amount of each of two products to produce over the coming planning period. The following information concerns labor availability, labor utilization, and product profitability: Labor-Hours Required (hours/unit) Department Product 1 Product 2 Hours Available A. 1.00 0.35 95 B 0.30 0.20 38 0.20 0.50 50 Profit contribution/unit $30.00 $15.00 (a) Develop a linear programming model of the Hartman Company problem. Solve the model to determine the optimal production quantities of products 1 and 2. If required, round your answer to two decimal places. Product 1 Product 2 Production 77.89 15 (b) 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? - Select your answer What is the upper limit of what you would be willing to pay per hour of overtime in the department you recommended? If required, round your answer to two decimal places. (c) Suppose that 8, 6, and 8 hours of overtime may be scheduled in departments A, B, and C, respectively. The cost per hour of overtime is $18 in department A, $22.50 in department B, and $12 in department C. Formulate a linear programming model that can be used to determine the optimal production quantities if overtime is made available. What are the optimal production quantities, and what is the revised total contribution to profit? If required, round your answer to two decimal places. Product 1 Product 2 Production If required, round your answer to nearest whole number. Total Profit $ How much overtime do you recommend using in each department? If required, round your answer to two decimal places. If you answer is zero, enter "0". OT hours: Dept. Used A B What is the increase in the total contribution to profit if overtime is used? If required, round your answer to nearest whole number. 24 The management of Hartman Company is trying to determine the amount of each of two products to produce over the coming planning period. The following information concerns labor availability, labor utilization, and product profitability: Labor-Hours Required (hours/unit) Department Product 1 Product 2 Hours Available A. 1.00 0.35 95 B 0.30 0.20 38 0.20 0.50 50 Profit contribution/unit $30.00 $15.00 (a) Develop a linear programming model of the Hartman Company problem. Solve the model to determine the optimal production quantities of products 1 and 2. If required, round your answer to two decimal places. Product 1 Product 2 Production 77.89 15 (b) 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? - Select your answer What is the upper limit of what you would be willing to pay per hour of overtime in the department you recommended? If required, round your answer to two decimal places. (c) Suppose that 8, 6, and 8 hours of overtime may be scheduled in departments A, B, and C, respectively. The cost per hour of overtime is $18 in department A, $22.50 in department B, and $12 in department C. Formulate a linear programming model that can be used to determine the optimal production quantities if overtime is made available. What are the optimal production quantities, and what is the revised total contribution to profit? If required, round your answer to two decimal places. Product 1 Product 2 Production If required, round your answer to nearest whole number. Total Profit $ How much overtime do you recommend using in each department? If required, round your answer to two decimal places. If you answer is zero, enter "0". OT hours: Dept. Used A B What is the increase in the total contribution to profit if overtime is used? If required, round your answer to nearest whole number. 24
Expert Answer:
Related Book For
College Mathematics for Business Economics Life Sciences and Social Sciences
ISBN: 978-0321614001
12th edition
Authors: Raymond A. Barnett, Michael R. Ziegler, Karl E. Byleen
Posted Date:
Students also viewed these general management questions
-
The following general equation can be used to determine missing information about balance sheet accounts: Use this equation to determine the missing information in each of the following in dependent...
-
What test can be used to determine whether the mean balance score is the same for RA and OA patients? What are some assumptions of this test? Rheumatology A study was conducted [12] comparing muscle...
-
A magnetic field can be used to determine the sign of charge carriers in a current- carrying wire. Consider a wide conducting strip in a magnetic field oriented as shown in Fig. 19.34. The charge...
-
In an attempt to identify ecologically friendly methods for controlling mosquito populations, researchers conducted eld experiments in India where aquatic nymphs of the dragony Brachytron pretense...
-
As in Exercise 24 and Example 36.10 assume that the height (in inches) of an American female is Normal with expected value = 64 and standard deviation 1 = 2.5. Also assume that the height of an...
-
Duggins Veterinary Supplies can issue perpetual preferred stock at a price of $50 a share with an annual dividend of $4.50 a share. Ignoring flotation costs, what is the companys cost of preferred...
-
Refer to Googles financial statements in Appendix A to compute its equity ratio as of December 31, 2015, and December 31, 2014. Data From Google Financial Statement Appendix A Google Inc....
-
Data for Mariner Designs, Inc., follow: Requirements 1. Prepare a horizontal analysis of the comparative income statement of Mariner Designs, Inc. Round percentage changes to one decimal place. 2....
-
1. You invest $2000 in an account that pays simple interest of 7% for 10 years. The amount of money you'll have at the end of 10 years is: 2. Use the compound interest formula to determine the...
-
Cortez Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs are $50,000 for proposal A and...
-
Why is the estimated residual value so important in determining lease rates? Explain
-
Intro Consider the following information for Blue Cow, a U.S. corporation: Stock beta: 1.2 Bond interest rate: 7.1% Target capital structure: 60% equity, 40% debt Tax rate: 26% Treasury bond...
-
What is the opportunity cost of producing one unit of Wine in France (in terms of cheese)? Wine Cheese England 1 4 France 3 2
-
You purchased a zero-coupon bond one year ago for $281.33. The market interest rate is now 7 percent. Assume semiannual compounding. If the bond had 19 years to maturity when you originally purchased...
-
Company is importing and exporting Japanese cars. Meezan Bank invests Rs. 38 Million for 82% profit share. An investor invest Rs. 2.5 Million for 18% profit share. The investor is to be paid a 5%...
-
a Java file for Trainer class that will produce given sample output int money -int potions -int pokeballs - Point loc - Map map Trainer ArrayList pokemon + Trainer(String n, Pokemon p, Map m) +int...
-
Identify the sentence that contains a clich. If I'd had the money, I would have used it to help Sally with her financial problems. If I'd had the money, I would have done something to help Sally with...
-
Provide an example of an aggressive accounting practice. Why is this practice aggressive?
-
If a red ball is drawn, what is the probability that it came from urn 1? In Problem, one of two urns is chosen at random with one as likely to be chosen as the other. Then a ball is withdrawn from...
-
Six popular brands of cola are to be used in a blind taste study for consumer recognition. (A) If 3 distinct brands are chosen at random from the 6 and if a consumer is not allowed to repeat any...
-
Consider the problem of minimizing f(x, y)subject to g(x,y) = 0, where g(x,y) = 4x - y + 3. Explain how the minimization problem can be solved without using the method of Lagrange multipliers.
-
Let \(Y\) be distributed according to the beta \((1510)\) distribution. (a) Find \(\mathrm{E}[Y]\). (b) Find \(\operatorname{Var}[Y]\). (c) Find \(P(Y <5)\) using the normal approximation.
-
A city is considering building a new museum. The local paper wishes to determine the level of support for this project, and is going to conduct a poll of city residents. Out of the sample of 120...
-
Sophie, the editor of the student newspaper, is going to conduct a survey of students to determine the level of support for the current president of the students' association. She needs to determine...
Study smarter with the SolutionInn App