Formulate the LP and then use the graphical 2D method to solve Corner points of the feasible region: If there is more than one corner point, type the points separated by a comma (i.e. (1,2),(3,4)). Maximum profit is: $ when and downhill skis cross country skis are produced.
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- The Chineke Group of Company manufactures two products, namely product B and product P, and provides you with the following information: Prod. B Prod. P Selling price per unit 80.00 50.00 Less cost of sales: Direct material A @ R5.00 per kg 15.00 10.00 Direct material B @ R4.00 per kg 8.00 12.00 Direct labour @ R6.00 per hour 12.00 6.00 Variable manufacturing overhead @ R5.00 per labour hour 10.00 5.00 Fixed manufacturing overhead per unit 5.00 5.00 Gross profit 30.00 12.00 Less sales & administrative costs: Variable 6.00 4.00 Fixed 10.00 5.00 Net profit per unit 14.00 3.00 Take note of the following constraints: Material A available 360 kg Material B available 360 kg Labour hours available…XYZ Leather Company manufactures and sells two products, wallets and belts, in its two-department plant. Operating data pertaining to the two products are as follows: Wallets Belts Selling price per unit P30 P50 Cost per unit: Variable manufacturing costs P8 P15 Variable marketing costs P2 P3 Fixed manufacturing costs P5 P5 Fixed marketing costs P6 P1 Cutting Finishing…Fedori Corporation has a Parts Division that does work for other Divisions in the company as well as for outside customers. The company's Machinery Division has asked the Parts Division to provide it with 4,000 special parts each year. The special parts would require P23.00 per unit in variable production costs. The Machinery Division has a bid from an outside supplier for the special parts at P37.00 per unit. In order to have time and space to produce the special part, the Parts Division would have to cut back production of another part-the YR24 that it presently is producing. The YR24 sells for P40.00 per unit, and requires P28.00 per unit in variable production costs. Packaging and shipping costs of the YR24 are P3.00 per unit. Packaging and shipping costs for the new special part would be only P1.50 per unit. The Parts Division is now producing and selling 15,000 units of the YR24 each year. Production and sales of the YR24 would drop by 20% if the new special part is produced for…
- A bicycle component manufacturer produces hubs for bike wheels. Two processes are possible for manufacturing, and the parameters of each process are as follows: Process 1 Production rate Daily production time Process 2 35 parts/hour 4 hours/day 20% 15 parts/hour 7 hours/day 9% Percent parts rejected Assume that the daily demand for hubs allows all defect-free hubs to be sold. Select the process that maximizes profit per day if each part is made from $4 worth of material and can be sold for $30. Both processes are fully automated, and variable overhead cost is charged at the rate of $40 per hour.Kilmer Company's customer demand for its only product exceeds its manufacturing capacity. The company provided the following information for the machine whose limited capacity is prohibiting the company from producing and selling additional units: Actual run tine this week Machine time available per week Actual run rate this week Ideal run rate Defect-free output this week Total output this week (including defects) 1-a. Utilization rate 1-b. Efficiency rate. 1-c. Quality rate 1-d. Overall equipment effectiveness 2-a. Utilization loss in units 12,800 minutes 16,000 minutes. 2-b. Efficiency loss in units 2-c. Quality loss in units 6.30 units per minute. 9 units per minute. Required: 1. and 2. With respect to the company's overall equipment effectiveness, calculate the following: Note: Do not round intermediate calculations. Round final answers to 2 decimal places and "Units" answers to the nearest whole number. 72,576 units 80,640 unitsSpartan Castings must implement a manufacturing process that reduces the amount of particulates emitted into the atmosphere. Two processes have been identified that provide the same level of particulate reduction. The first process is expected to incur $350,000 of fixed cost and add $50 of variable cost to each casting Spartan produces. The second process has fixed costs of $150,000 and adds $90 of variable cost per casting.a. What is the break-even quantity beyond which the first process is more attractive?b. What is the difference in total cost if the quantity produced is 10,000?
- Pranuec Company mai Tactures, assembles, and rebunds material handing equipment used Tn war ses and uistr iters. One product, called a Liftmaster, is assembled from four components: a frame, a motor, two supports, and a metal strap. Frandec's production schedule calls for 6000 Liftmasters to be made next month. Frandec purchases the motors from an outside supplier, but the frames, supports, and straps may be either manufactured by the company or purchased from an outside supplier. Manufacturing and purchase costs per unit are shown. Component Manufacturing Cost Purchase Cost Frame $39.00 $52.00 Support $12.50 $16.00 Strap $7.50 $8.50 Three departments are involved in the production of these components. The time (in minutes per unit) required to process each component in each department and the available capacity (in hours) for the three departments are as follows: Department Component Cutting Milling Shaping Frame 3.6 2.3 3.2 Support 1.4 1.8 2.7 Strap 0.9 1.8 Capacity (hours) 370 430…De Mar, a plumbing, heating, and air-conditioning companylocated in Fresno, California, has a simple but powerful product strategy: Solve the customer’s problem no matter what, solvethe problem when the customer needs it solved, and make sure thecustomer feels good when you leave . De Mar offers guaranteed,same-day service for customers requiring it. The company provides 24-hour-a-day, 7-day-a-week service at no extra charge forcustomers whose air conditioning dies on a hot summer Sundayor whose toilet overflows at 2:30 A.M. As assistant service coordinator Janie Walter puts it: “We will be there to fix your A/C onthe fourth of July, and it’s not a penny extra. When our competitors won’t get out of bed, we’ll be there!”De Mar guarantees the price of a job to the penny before thework begins. Whereas most competitors guarantee their work for30 days, De Mar guarantees all parts and labor for one year. Thecompany assesses no travel charge because “it’s not fair to chargecustomers for…Jefferson Company’s demand for its only product exceeds its manufacturing capacity. The company provided the following information for the machine whose limited capacity is prohibiting the company from producing and selling additional units. Actual run time this week 6,106 minutes Machine time available per week 8,600 minutes Actual run rate this week 4.32 units per minute Ideal run rate 6.00 units per minute Defect-free output this week 11,315 units Total output this week (including defects) 15,500 units 1. Compute the utilization rate.2. Compute the efficiency rate. 3. Compute the quality rate. 4. Compute the overall equipment effectiveness (OEE).
- Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Products Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Additional data concerning these products are listed below. A B C $15.30 $ 11.20 $12.00 20.40 28.40 34.60 3.70 3.60 4.20 35.80 27.60 38.20 $79.10 $ 77.80 $ 95.40 5.30 27.50 $ 68.50 Multiple Choice A 4.80 $77.10 $ 3.20 5,000 D $11.60 41.40 Products C D 4.40 5.30 $88.40 $ 105.20 $ 4.30 $ 2.60 4,000 3,000 Grinding minutes per unit B 6.30 $ 94.50 $ 2.20 Selling price per unit Variable selling cost per unit Monthly demand in units 5,000 The grinding machines are potentially the constraint in the production facility. A total of 89,600 minutes are available per month on these machines. Direct labor is a variable cost in this company. Up to how much should the company be willing to pay for one additional minute of grinding machine time if the company has made the…Suppose a car you want to buy has five choices for interior colors, three types of radios, three engine choices, two battery types (regular and heavy-duty), 10 exterior colors, two transmission choices, and four types of wheel covers. How many possible combinations of there are possible for the manufacturer? What can be done to limit the number of combinations without limiting customer choice?Would the choice of denominator level affect the amount of the fixed factory overhead budget variance? Fixed overhead production volume variance? Explain