Question

In: Finance

A company is making 2 kinds of Gloves per week: Regular (R ) Gloves and Fancy...

  1. A company is making 2 kinds of Gloves per week: Regular (R ) Gloves and Fancy (F) ones. They have 3 departments with limited hours per week. These 3 departments are Cutting Depart. (has 90 hrs), Sewing Depart. (has 30 hrs), and Packaging Depart. (has 10 hrs). They make $15 profit for each pair of Regular Gloves and $24 profit for Fancy gloves. It takes 1.0 hr to cut, 0.5 hour to sew and 1/8 of hour to package a pair of Regular gloves. It takes 1.5 hr to cut, 20 minutes to sew and 15 minutes to package a pair of Fancy gloves.

  • how many of each gloves should they make to Maximize the profit

  • Which department has extra capacity

Solutions

Expert Solution

First image is the solution and second image is showing formulas.

40 pairs of fancy gloves making is most profitable one

And making 40 pairs of fancy gloves , Cutting Dept will have 30 hrs and sewing dept will have 16.6667 hrs of extra capacity.


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