Maple Leafs (ML) produces two models of hockey sticks, Youth and Adult. Sales of Youth provide a
Question:
Maple Leafs (ML) produces two models of hockey sticks, Youth and Adult. Sales of Youth provide a $15 contribution margin per sticks; sales of Adult provide a $20 contribution margin per unit. All hockey sticks are started in the Forming Department and completed in the Finishing Department. In the Forming Department a special type of super strength fibre glass is used for sticks formation. Due to global shortages, ML cannot get more than 2,000 meters of this fibre glass per month. The Youth model requires 1 meter of fibre glass per sticks and the Adult model requires 1.5 meters. Special machinery in the Finishing Department cannot be used more than 3,000 hours per month. Both models require 2 hours per sticks with this machinery to finish. ML can sell as much as it can produce of Youth but cannot sell more than 750 sticks of Adult per month.
REQUIRED:
1. What is Maple Leafs’ objective function?
2. State the equations that represent Maple Leafs’ constraints?
3. Determine the product mix that will maximize the constrained resources.
4. At the point determined above, how much profit will be made?
