- The Following Table Includes The Estimated Cost And Price Per Unit For Each Model Model Unit Production Cost Retail Pri 1 (41.92 KiB) Viewed 16 times
Donald's factory produces four different models: the sedan, the
convertible, the wagon, and the SUV. He wants to use Excel to help
him optimize his operations. Donald has asked you to use
Excel to help him figure out the numbers of each model to
produce in order to maximize the expected total factory profit.
However, there are several constraints on the numbers of each model
to be produced:
• At least 1,000 units of each model must be produced to utilize
parts inventory.
• Due to contractual obligations to supply a rental car company
with cars for its fleet, at least 3,000 units of the sedan, and
• 1,800 units of the SUVs must be produced.
• The factory is not currently capable of producing more than
18,000 cars of all models combined in a year.
• It is estimated that no more than 4,000 units of the wagon
could be sold in a year, so therefore no more than 4,000 wagons
should be produced.
• No more than 4,100 units of the convertibles should be
produced because that is the most convertible tops that the
supplier can guarantee to deliver for the year.
- The Following Table Includes The Estimated Cost And Price Per Unit For Each Model Model Unit Production Cost Retail Pri 2 (58.01 KiB) Viewed 16 times
Model Sedan Convertible Wagon SUV Unit Production Cost (in $) YEARLY PRODUCTION/PROFIT DATA Retail Price Profit per Vehicle (in $) (in $) # Produced Total Profit Generated (in $)