- Vollmer Manufacturing Makes Three Components For Sale To Refrigeration Companies The Components Are Processed On Two Ma 1 (59.41 KiB) Viewed 69 times
Vollmer Manufacturing makes three components for sale to refrigeration companies. The components are processed on two machines: a shaper and a grinder. The times (in minutes) required on each machine are as follows. Machine Component Shaper Grinder 1 6 4 2 4 5 3 2 The shaper is available for 120 hours, and the grinder is available for 110 hours. No more than 200 units of component 3 can be sold, but up to 900 units of each of the other components can be sold. In fact, the company already has orders for 600 units of component 1 that must be satisfied. The per unit selling price and per unit variable costs for each of the three components are as follows. Component Selling Price Material Cost Labor Cost 1 $25 $12 $5 2 $18 $8 54 3 $27 $13 $5 - (a) For each component, calculate the profit margin (in dollars, profit margin= selling price material cost-labor cost). component 1 $ component 2 S component 3 $ Formulate and solve for the recommended production quantities that will maximize contribution to profit. component 1 units component 2 units component 3 units (b) What are the objective coefficient ranges (in dollars) for the three components? (If there is no upper or lower limit, enter NO LIMIT. Round your answers to two decimal places.) component 1 $ to $ component 2 to $ component 3 to s $ $