Question

In: Operations Management

MegaSports, Inc. produces two high-priced metal baseball bats, the Slugger and the Launcher, that are made...

MegaSports, Inc. produces two high-priced metal baseball bats, the Slugger and the Launcher, that are made from special aluminum and steel alloys. The cost to produce a Slugger bat is $100, and the cost to produce a Launcher bat is $120. We cannot assume that MegaSports will sell all the bats it can produce. As the selling price of each bat model—Slugger and Launcher—increases, the quantity demanded for each model goes down.
​
Assume that the demand, S, for Slugger bats is given by S = 640 − 4PS and the demand, L, for Launcher bats is given by L = 450 − 3 PL where PS is the price of a Slugger bat and PL is the price of a Launcher bat. MegaSports manufactures as many bats as there is demand for at the price it charges for them.

Q3: (2pts) What are the optimal number of Slugger bats and Launcher bats manufactured if there is no constraint and you want to maximize profit?

Q4: (3pts) The Slugger uses 2 units of special alloys in its manufacture and the Launcher uses 1 unit. You currently have (at most) 200 units of special alloys available. Write the constrained problem. Is the point you found in Q3 feasible for the constrained problem? Plot the feasible set and objective function lines around the point you found in Q3. Which constraint is tight at optimality?

Solutions

Expert Solution

Q3. Optimal number of bats manufactured if there is no constrains and maximizing Profit:

1. Slugger Bats: 120

2. Launcher Bats : 45

Formula for Cell D2 : =640-4*C2

Formula for Cell D3 : =450-3*C3

Formula for Cell E2 : =(C2-B2)*D2

Formula for Cell E3 : =(C3-B3)*D3

Formula for Cell E4 : =SUM(E2:E3)

Solver constraints:

Q4. No , the point found in Q3 is not feasible with Constraints. With the constraint, demand for Slugger bat is 84 and for Launcher bat is 32 (rounding to the nearest integer)

Formula for F2: =2*D2

Formula for F3: =2*D3

Solver Parameters:

keosha answered 2 years ago
Next > < Previous

Related Solutions

Negan Sports Inc. produces high quality handcrafted wooden baseball bats used by many major league players....
Negan Sports Inc. produces high quality handcrafted wooden baseball bats used by many major league players. Lucille Corp. is looking to purchase bats to use in its corporate marketing campaign and has offered to purchase 3,000 bats from Negan Sports' customised range. The typical cost of one of the bats is as follows: Direct material $37.00 Direct labour: 2 hours at $15.00 30.00 Total manufacturing overhead:    2 hours at $35.00 70.00 Total $137.00 The normal selling price of one of...
Munoz Sporting Equipment manufactures baseball bats and tennis rackets. Department B produces the baseball bats, and...
Munoz Sporting Equipment manufactures baseball bats and tennis rackets. Department B produces the baseball bats, and Department T produces the tennis rackets. Munoz currently uses plantwide allocation to allocate its overhead to all products. Direct labor cost is the allocation base. The rate used is 100 percent of direct labor cost. Last year, revenue, materials, and direct labor were as follows: Baseball Bats Tennis Rackets Sales revenue $ 1,530,000 $ 1,000,000 Direct labor 290,000 145,000 Direct materials 554,000 288,000 Required:...
Munoz Sporting Equipment manufactures baseball bats and tennis rackets. Department B produces the baseball bats, and...
Munoz Sporting Equipment manufactures baseball bats and tennis rackets. Department B produces the baseball bats, and Department T produces the tennis rackets. Munoz currently uses plantwide allocation to allocate its overhead to all products. Direct labor cost is the allocation base. The rate used is 200 percent of direct labor cost. Last year, revenue, materials, and direct labor were as follows. Baseball Bats Tennis Rackets Sales revenue $ 1,350,000 $ 900,000 Direct labor 250,000 125,000 Direct materials 550,000 275,000 Required:...
6. Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed...
6. Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $377,400, and the sales mix is 20% bats and 80% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $40 $30 Gloves 100 60 a. Compute the break-even sales (units) for both products combined. units b. How many units of each product, baseball bats and baseball gloves,...
Suppose that a firm produces baseball bats in a monopolistically competitive market.
 4. Is monopolistic competition efficient? Suppose that a firm produces baseball bats in a monopolistically competitive market. The following graph shows its demand curve, marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve. Place a black point (plus symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for this firm. Next, place a grey point (star symbol) to indicate the minimum average total cost the firm faces and the quantity associated with...
Lexington Company produces baseball bats and cricket paddles. It has two departments that process all products....
Lexington Company produces baseball bats and cricket paddles. It has two departments that process all products. During July, the beginning work in process in the cutting department was half completed as to conversion, and complete as to direct materials. The beginning inventory included $40,000 for materials and $60,000 for conversion costs. Ending work-in-process inventory in the cutting department was 40% complete. Direct materials are added at the beginning of the process. Beginning work in process in the finishing department was...
Lexington Company produces baseball bats and cricket paddles. It has two departments that process all products....
Lexington Company produces baseball bats and cricket paddles. It has two departments that process all products. During July, the beginning work in process in the cutting department was half completed as to conversion, and complete as to direct materials. The beginning inventory included $40,000 for materials and $60,000 for conversion costs. Ending work-in-process inventory in the cutting department was 40% complete. Direct materials are added at the beginning of the process. Beginning work in process in the finishing department was...
Homerun Corporation produces baseball bats for kids that it sells for $38 each. At? capacity, the...
Homerun Corporation produces baseball bats for kids that it sells for $38 each. At? capacity, the company can produce 36,000 bats a year. The costs of producing and selling 36,000 bats are as? follows: LOADING... ?(Click to view the? costs.) Cost per Bat Total Costs Direct materials $12 $432,000 Direct manufacturing labor 2 72,000 Variable manufacturing overhead 2 72,000 Fixed manufacturing overhead 7 252,000 Variable selling expenses 4 144,000 Fixed selling expenses 5 180,000 Total costs $32 $1,152,000 Read the...
Double Corporation produces baseball bats for kids that it sells for $33 each. At​ capacity, the...
Double Corporation produces baseball bats for kids that it sells for $33 each. At​ capacity, the company can produce 50,000 bats a year. The costs of producing and selling 50,000 bats are as​ follows: Cost per Bat Total Costs Direct materials $11 $550,000 Variable direct manufacturing labor 4 200,000 Variable manufacturing overhead 2 100,000 Fixed manufacturing overhead 3 150,000 Variable selling expenses 3 150,000 Fixed selling expenses 4 200,000 Total costs $27 $1,350,000 1. Suppose Double is currently producing and...
Case 2 Slugger Corporation produces baseball bats for kids that it sells for $36 each. At...
Case 2 Slugger Corporation produces baseball bats for kids that it sells for $36 each. At capacity, the company can produce 50,000 bats a year. The costs of producing and selling 50,000 bats are as follows: Cost per Bat Total costs Direct materials $13 $650,000 Direct manufacturing labor 5 250,000 Variable manufacturing overhead 2 100,000 Fixed manufacturing overhead 6 300,000 Variable selling expenses 3 150,000 Fixed selling expenses 8 100,000 Total costs $31 $1,550,000 Additional information: Suppose Slugger is currently...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT