Question

In: Finance

The Westfall Company has a contract to produce 10,000 garden hoses for a large discount chain....

The Westfall Company has a contract to produce 10,000 garden hoses for a large discount chain. Westfall has four different machines that can produce this kind of hose. Because these machines are from different manufacturers and use differing technologies, their specifications are not the same.


Machine

Fixed Cost to Set
Up Production Run

Variable Cost
Per Hose

Capacity

1

750

1.25

6000

2

500

1.50

7500

3

1000

1.00

4000

4

300

2.00

5000

?

Implement a spreadsheet model and use Excel Solver to obtain a solution to the problem. Submit your Excel Solver file.

Hint: Some combination of the machines will be used to achieve the objective. All machines may or may not be used.

Solutions

Expert Solution

Total Cost = 13250


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