A gear manufacturer produces gears for a machine. Two processes, casting and forging, are possible for manufacturing, and the parameters of each process are as follows:

Assume that the daily demand for gears allows all defect-free gears to be sold. Additionally tested or rejected gears cannot be sold.
Find the process that maximizes profit per day if each part is made from $5 worth of material and can be sold for $70. Both processes are fully automated, and variable overhead cost is charged at the rate of $90 per hour.

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Casting Forging Production rate Daily production time Percent of parts 80 gears per hour 10 hours per day 20% 40 gears per hour 16 hour per day 10% rejected based on visual inspection