Better Products, Inc., manufactures three products on two machines. In a typical week, there are 40 hours available on each machine. The contribution to profit and production time in hours per unit are as follows:

Category	Product 1	Product 2	Product 3
profit/unit	$30	$54	$25
Machine 1 time/unit	0.5	2	1
Machine 2 time/unit	1	2	1

Two operators are required for machine 1; therefore, 2 hours of labor must be scheduled for each machine hour 1 time. Only one operator is required for machine 2. There is a maximum of 100 hours of labor available to assign to the machines over the next week. Other production requirements are that product 1 cannot represent more than 50% of the units produced and that product 3 must represent at least 25% of the units produced.

1. How many units of each product must be produced to maximize the total contribution to profit? If necessary, round your answers to the nearest whole number. If your answer is zero, enter “0.”
   

   Product	# of units
   1
   2
   3

   What is the projected weekly profit associated with your solution?
   
   Profit = $
2. How many hours of production time will be programmed into each machine?
   

   Machine hours calendar:
   Machine 1	Hours
   Machine 2	Hours

3. What is the value of an additional hour of work? If necessary, round your answer to two decimal places.
   
   $
4. Assume that the labor capacity can be increased to 120 hours. Develop the optimal product mix, assuming the additional hours are available. If necessary, round non-monetary answers to the nearest whole number. If necessary, round the monetary answer to the nearest dollar. If your answer is zero, enter “0.”
   

   Product	# of units
   1
   2
   3

   Benefit = $
   
   Would you be interested in using the additional 20 hours available for this resource?

Answer rating: 100% (QA)

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