Question

In: Finance

12). Zen Inc. manufactures two types of products, the G1 and the T1 model airplane. The...

12). Zen Inc. manufactures two types of products, the G1 and the T1 model airplane. The manufacturing process consists of two principal departments: production and assembly. The production department has 58 skilled workers, each of whom works 7 hours per day. The assembly department has 25 workers, who also work 7-hour shifts. On an average, to produce a G1 model, Zen Inc. requires 3.5 labor hours for production and 2 labor hours for assembly. The T1 model requires 4 labor hours for production and 1.5 labor hours in assembly. The company anticipates selling at least 1.5 times as many T1 models as G1 models. The company operates five days per week and makes a net profit of $130 on the G1 model, and $150 on the T1 model. Zen Inc. wants to determine how many of each model should be produced on a weekly basis to maximize net profit. If the numbers of G1 and T1 products produced each week are denoted as G and T respectively, the function that describes the production department's labor constraint for a week is Select one: a. 16G + 14T ≥ 8120. b. 16G + 14T ≤ 8120. c. 3.5G + 4T ≤ 2030. d. 3.5G + 4T ≥ 2030.

Solutions

Expert Solution

Labor Constraint :

A. Labor hours Available:

Production Department :

Number of labor hours available per day =58*7=406

Number of days in a week =5

Number of labor hours available per week =406*5=2030

Assembly Department :

Number of labor hours available per day =25*7=175

Number of days in a week =5

Number of labor hours available per week =175*5=875

B. Labor hours Required;

Labor hours required for G1 model:

Labor hours required at Production Department=3.5G

Labor hours required at Assembly Department=2G

Labor hours required for T1 model:

Labor hours required at Production Department=4T

Labor hours required at Assembly Department=1.5T

Total labor hours required at Production Department =3.5G+4T

Total labor hours required at Assembly Department =2G+1.5T

Constraint:

Labor hours Required ≤ Labor hours Available

Production Department’s Labor constraint

3.5G+4T ≤2030

Assembly Department’s Labor constraint

2G+1.5T ≤875

Production Department’s Labor constraint

c.3.5G+4T ≤2030


Related Solutions

Zen Inc. manufactures two types of products, the G1 and the T1 model airplane. The manufacturing...
Zen Inc. manufactures two types of products, the G1 and the T1 model airplane. The manufacturing process consists of two principal departments: production and assembly. The production department has 58 skilled workers, each of whom works 7 hours per day. The assembly department has 25 workers, who also work 7-hour shifts. On an average, to produce a G1 model, Zen Inc. requires 3.5 labor hours for production and 2 labor hours for assembly. The T1 model requires 4 labor hours...
20.) Zen Inc. manufactures two types of products, the G1 and the T1 model airplane. The...
20.) Zen Inc. manufactures two types of products, the G1 and the T1 model airplane. The manufacturing process consists of two principal departments: production and assembly. The production department has 58 skilled workers, each of whom works 7 hours per day. The assembly department has 25 workers, who also work 7-hour shifts. On an average, to produce a G1 model, Zen Inc. requires 3.5 labor hours for production and 2 labor hours for assembly. The T1 model requires 4 labor...
Territory and Product Profitability Analysis Zen Skateboards, Inc., manufactures and sells two styles of skateboards, Street...
Territory and Product Profitability Analysis Zen Skateboards, Inc., manufactures and sells two styles of skateboards, Street Machine and Winter Warrior. These skateboards are sold in two regions, Southern Coast and Northern Coast. Information about the two skateboards is as follows: Street Machine Winter Warrior Sales price $400 $350 Variable cost of goods sold per unit 148 161 Manufacturing margin per unit $252 $189 Variable selling expense per unit 156 105 Contribution margin per unit $96 $84 The sales unit volume...
1. Quackers Toys Inc., manufactures two types of radio operated trucks: Model X and Model Y....
1. Quackers Toys Inc., manufactures two types of radio operated trucks: Model X and Model Y. Both models require metal frame parts and electrical components. The shop manager estimates that there will be 200 units of frame parts and 300 units of electrical components available for production next week. Each Model X requires one unit of frame parts and two units of electrical components. Each Model Y requires three units of frame parts and two units of electrical components. The...
Trevor Inc. manufactures model airplane kits and projects production at 150, 530, 300, and 750 kits...
Trevor Inc. manufactures model airplane kits and projects production at 150, 530, 300, and 750 kits for the next four quarters. Manufacturing Information: Direct materials are 4 ounces of plastic per kit and the plastic costs $2 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is 900 ounces, and the company desires to end each quarter with 30% of the materials needed for the next quarter's production. trevor desires...
A & B manufactures and sells two types of products to a number of customers. The...
A & B manufactures and sells two types of products to a number of customers. The resources are as follows: Material Type Product X Product Y Available Material P 8 10 31,250 Material Q 10 5 20,000 Direct Labour 4 5 17,500 Maximum sales(demand) for X is 1000 units and Y 3000 units.Contribution margin X $96 and Y $110 Formulate a linear programme Solve in excel Write a brief report to explain the analysis
Puget World, Inc., manufactures two models of television sets, the N 800 XL model and the N 500 model. Data regarding the two products follow:
  Puget World, Inc., manufactures two models of television sets, the N 800 XL model and the N 500 model. Data regarding the two products follow:   Direct Labor-Hours per Unit Annual Production Total DirectLabor-Hours   Model N 800 XL 2.5   3,500 units 8,750   Model N 500 1.3 12,500 units 16,250               25,000           Additional information about the company follows: a. Model N 800 XL requires $65 in direct materials per...
A company manufactures two different types of gloves: a regular model and a catcher’s mitt. The...
A company manufactures two different types of gloves: a regular model and a catcher’s mitt. The table below gives the basic information. Write the objective function, along with the constraints. All times are in hours. Model Cutting and Sewing Finishing Packing and Shipping Profit/Glove Regular 1 ½ 1/8 $5 Catcher 1/2 1/3 1/4 $8 Total Time 900 300 100
2.) A company manufactures two types of products, A and B. The unit revenues are $2...
2.) A company manufactures two types of products, A and B. The unit revenues are $2 and $3, respectively. Two raw materials M1 and M2, used in the manufacture of the two products have daily availabilities of 4 and 6 units, respectively. One unit of A uses 1 unit of M1 and 1 unit of M2, and one unit of B uses 1 unit of M1 and 2 units of M2. a) Formulate a linear programming model and obtain the...
Smithson, Inc. produces two types of gas grills: a family model and a deluxe model. Smithson’s...
Smithson, Inc. produces two types of gas grills: a family model and a deluxe model. Smithson’s controller has decided to use a plantwide overhead rate based on direct labor costs. The president of the company recently heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company’s operations:                                                                         Family Model      Deluxe Model                         Direct labor costs                   ...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT