MSA Computer Corporation manufactures two models of minicomputers,the Alpha 4 an

Question

MSA Computer Corporation manufactures two models of minicomputers,the Alpha 4 and the Beta 5. The firm employs 5 technicians, working160 hours each per month, on its assembly line. Management insiststhat full employment (that is, all 160 hours of time) bemaintained for each worker during next month’s operations. Itrequires 20 labor-hours to assemble each Alpha 4 computer and 25labor-hours to assemble each Beta 5 model. MSA wants to see atleast 10 Alpha 4s and at least 15 Beta 5s produced during theproduction period. Alpha 4s generate a $1,500 profit per unit, andBetas yield $1,800 each.

Determine the most profitable number of Alpha-4 model ofminicomputer to produce during the coming month.

Round your answer to 2 decimal places; forexample, 12.34 .

Determine the most profitable number of Beta-5 model ofminicomputer to produce during the coming month.

Round your answer to 2 decimal places; forexample, 12.34 .

What is the optimal profit?

Round your answer to the nearest whole number; forexample, 12,345 .

MSA Computer Corporation manufactures two models of minicomputers,the Alpha 4 and the Beta 5. The firm employs 5 technicians, working160 hours each per month, on its assembly line. Management insiststhat full employment (that is, all 160 hours of time) bemaintained for each worker during next month’s operations. Itrequires 20 labor-hours to assemble each Alpha 4 computer and 25labor-hours to assemble each Beta 5 model. MSA wants to see atleast 10 Alpha 4s and at least 15 Beta 5s produced during theproduction period. Alpha 4s generate a $1,500 profit per unit, andBetas yield $1,800 each.

Determine the most profitable number of Alpha-4 model ofminicomputer to produce during the coming month.

Round your answer to 2 decimal places; forexample, 12.34 .

Determine the most profitable number of Beta-5 model ofminicomputer to produce during the coming month.

Round your answer to 2 decimal places; forexample, 12.34 .

What is the optimal profit?

Round your answer to the nearest whole number; forexample, 12,345 .

Explanation / Answer

A) 10 B) 24 C) $ 58,200 Explanation Total labor hours available = 160 * 5 = 800 hrs Out of the 800 hrs , 200 hrs are used for alpha-4 model ( 20hrs perpiece * 10 units = 200 hrs) Hours remaining for Beta 5 model is 800 -200 = 600 hrs. No. of beta-5 produced in 600 hrs = 600/ 25 = 24 beta models. 1,500 X1 + 1800 X2   = maximizing profit 1,500(10) +1,800(24) = 58,200

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