Question: Revisit the first example covered in Chapter 29. Consider all constraints but - in addition -assume that, whenever you sell more than 350 units (pounds)
Revisit the first example covered in Chapter 29. Consider all constraints but - in addition -assume that, whenever you sell more than 350 units (pounds) of any product, you must give a discount of $1.5 per pound on each pound above 350 sold. What is the optimal product mix, total labor and material used and maximum profit subject to all these constraints. remember that you may add as many calculation cells as you wish
| Discount p/pound: | $ 1.50 | |||||
| Discount threshold: | $ 350.00 | |||||
| Pounds made <= threshold: | ||||||
| Pounds made > threshold (discount): | ||||||
| Total made | ||||||
| Product | 1 | 2 | 3 | 4 | 5 | 6 |
| Labor | 6 | 5 | 4 | 3 | 2.5 | 1.5 |
| Raw Material | 3.2 | 2.6 | 1.5 | 0.8 | 0.7 | 0.3 |
| Unit price | $ 12.50 | $ 11.00 | $ 9.00 | $ 7.00 | $ 6.00 | $ 3.00 |
| Variable cost | $ 6.50 | $ 5.70 | $ 3.60 | $ 2.80 | $ 2.20 | $ 1.20 |
| Demand | 960 | 928 | 1041 | 977 | 1084 | 1055 |
| Unit profit cont. | $ 6.00 | $ 5.30 | $ 5.40 | $ 4.20 | $ 3.80 | $ 1.80 |
| PROFIT BOUGHT LABOR | $ - | $ 0.30 | $ 1.40 | $ 1.20 | $ 1.30 | $ 0.30 |
| Profit | ||||||
| Available | ||||||
| Labor Used | <= | 4500 | ||||
| Raw Material Used | <= | 1600 |
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