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Better Products, Inc., manufactures three products on two machines. In a typical week, 40 hours are...

Better Products, Inc., manufactures three products on two machines. In a typical week, 40 hours are available on each machine. The profit contribution and production time in hours per unit are as follows:

Category Product 1 Product 2 Product 3
Profit/unit $30 $50 $20
Machine 1 time/unit 0.5 2 0.75
Machine 2 time/unit 1 1 0.5

Two operators are required for machine 1; thus, 2 hours of labor must be scheduled for each hour of machine 1 time. Only one operator is required for machine 2. A maximum of 100 labor-hours is available for assignment to the machines during the coming week. Other production requirements are that product 1 cannot account for more than 50% of the units produced and that product 3 must account for at least 20% of the units produced.

How many units of each product should be produced to maximize the total profit contribution? If required, round your answers to the nearest integer.

Product # of units
1
2
3


What is the projected weekly profit associated with your solution?

$  

How many hours of production time will be scheduled on each machine? If required, round your answers to two decimal places.

Machine Hours Schedule: Machine 1:  hours; Machine 2:  hours

What is the value of an additional hour of labor? If required, round your answer to two decimal places.

$  

Assume that labor capacity can be increased to 120 hours. Develop the optimal product mix, assuming that the extra hours are made available. If required, round your answers to the nearest integer.

Product # of units
1
2
3


Profit = $  

Would you be interested in using the additional 20 hours available for this resource?

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Expert Solution

ekkarill92 answered 2 years ago
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