Question

In: Finance

Part 2 of 5 - Part 2 The Outdoor Furniture Corporation manufactures two products, benches and...

Part 2 of 5 - Part 2 The Outdoor Furniture Corporation manufactures two products, benches and picnic tables, for use in yards and parks. The firm has two main resources: its carpenters (labor force) and a supply of redwood for use in the furniture. During the next production cycle, 1,200 hours of labor are available under a union agreement. The firm also has a stock of 3,500 feet of good-quality redwood. Each bench that Outdoor Furniture produces requires 4 labor hours and 10 feet of redwood; each picnic table takes 6 labor hours and 35 feet of redwood. Completed benches will yield a profit of $9 each, and tables will result in a profit of $20 each.

Question 5 of 11

10.0 Points

The optimal production of benches is ______________ and the optimal production of tables is_____________ . (Please only enter an integer and include no units. Hint: Because of the resource constraints, you may not be able to produce 4 tables even if the solution is 3.8; you may have to just produce 3 tables.)

Solutions

Expert Solution

Number of. labor per unit Labor Raw material per unit Raw material profit per unit Profit
Benches 262.5 4 1050 10 2625 9 2362.5
Picnic table 25 6 150 35 875 20 500
Max available: 1200 3500 2862.5

he optimal production of benches is 262

optimal production of tables is 25


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