A manufacturing firm has discontinued production of a certain unprofitable produ

Question

A manufacturing firm has discontinued production of a certain unprofitable product line. Considerable excess production capacity was created as a result. Management is considering devoting this excess capacity to one or more of three products: X1, X2, and X3.

PRODUCT

     The salespeople estimate they can sell all the units of X1 and X2 that can be made. But the sales potential of X3 is 90 units per week maximum.

Set up the equations that can be solved to maximize the profit per week. (Leave no cells blank - be certain to enter "0" wherever required.)

Solve these equations using the Excel Solver. (Round your answers to the nearest whole number.)

How much of each constraint or resource is unused? (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to the nearest whole number.)

Suppose that an additional 100 hours per week can be obtained from the grinders by working overtime. The incremental cost would be $1.50 per hour. What would be the allowable increase(from the excel sensitivity report) in overtime when compared to additional hours that can be obtained? (Round "shadow price" to 2 decimal places and the rest to the nearest whole number.)

the additional hours that can be obtained.

A manufacturing firm has discontinued production of a certain unprofitable product line. Considerable excess production capacity was created as a result. Management is considering devoting this excess capacity to one or more of three products: X1, X2, and X3.

Explanation / Answer

X1, X2, X30

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