Problem 22S-17 (Algo) The M-N plant manufactures two different products: M and N. Selling prices and weekly market deman

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Problem 22s 17 Algo The M N Plant Manufactures Two Different Products M And N Selling Prices And Weekly Market Deman 1 (270.29 KiB) Viewed 74 times

Problem 22S-17 (Algo) The M-N plant manufactures two different products: M and N. Selling prices and weekly market demands are shown in the following diagram. Each product uses raw materials with costs as shown. The plant has three different machines: A, B, and C. Each performs different tasks and can work on only one unit of material at a time. Resources: A, B, C (one each) Availability: 3,600 min./week Operating expense: $12,000/week O Machine A O Machine C O Machine B Product M Product N Product mix Product M $190/unit 100 units/week 20 min./unit units units Weekly net profit A 15 min./unit RM-1 $60/unit Product N $200/unit 60 units/week 20 min./unit Process times for each task are shown in the diagram. Each machine is available 3,600 minutes per week. There are no "Murphys" (major opportunities for the system to foul up). Setup and transfer times are zero. Demand is constant. Operating expenses (including labor) total a constant $12,000 per week. Raw materials are not included in weekly operating expenses. a. Which machine is the constraint in this plant? B 10 min./unit RM-2 /$40/unit b. Which product mix provides the highest gross profit? (Hint: consider raw material cost but not operating expense) 10min./unit RM-3 $40/unit c. What is the maximum weekly net profit this plant can earn using the product mix from Part b? (Hint: consider operating expense and raw material cost)