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WK Qu.10-04 A manufacturer produces both widgets...
A manufacturer produces both widgets and gadgets. Widgets generate a profit of $45 each and gadgets have a profit margin of $75 each. To produce each item, a setup cost is incurred. This setup cost is $400 for widgets and $400 for gadgets. Widgets consume 3 units of raw material A and 4 units of raw material B. Gadgets consume 6 units of raw material A and 2 units of raw material B. Each day, the manufacturer has 400 units of each raw material available. Assume that it is possible to produce fractional quantities of widgets and gadgets.
Set up the problem in Excel and find the optimal solution.
Answer is complete and correct.
a. The manufacturer
will produce
widgets
and
will produce
gadgets.
Note: Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places.
Answer is complete and correct.
b. The manufacturer will
88.89
widgets and
gadgets
Answer is complete but not entirely correct.
c. The manufacturer's profit will be
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