Please Note: Zoom In

Post by **answerhappygod** » Tue Jul 12, 2022 11:38 am

: Please Note Zoom In 1 (46 KiB) Viewed 22 times

\begin{tabular}{|c|c|c|} \hline & \multicolumn{2}{|c|}{ Machine } \\ \hline Component & Shaper & Grinder \\ \hline 1 & 6 & 4 \\ \hline 2 & 4 & 5 \\ \hline 3 & 4 & 2 \\ \hline \end{tabular} unit selling price and per unit variable costs for each of the three components are as follows. \begin{tabular}{|c|c|c|c|} \hline Component & Selling Price & Material Cost & Labor Cost \\ \hline 1 & $25 & $12 & $5 \\ \hline 2 & $18 & $8 & $4 \\ \hline 3 & $27 & $13 & $5 \\ \hline \end{tabular} (a) For each component, calculate the profit margin (in dollars, profit margin = selling price - material cost - labor cost).
(c) What are the right-hand-side ranges? (Use minutes for time. If there is no upper or lower limit, enter NO LIMIT. Round your answers to the nearest integer.) shaper availability to grinder availability to Interpret these ranges for company management. These are the ranges over which the shadow prices for the associated constraints are not applicable. These are the ranges over which the shadow prices for the associated constraints are applicable. These are the ranges over which the reduced costs for the associated constraints are applicable. These are the ranges over which the reduced costs for the associated constraints are not applicable. (d) If more time could be made available on the grinder, how much would it be worth? Nothing, since there are 300 minutes of slack time on the grinder at the optimal solution. Every additional minute on the grinder increases profits by $3. Every additional minute on the grinder increases profits by $1.50. Every additional minute on the grinder decreases profits by $1. (e) If more units of component 3 can be sold by reducing the sales price by $4, should the company reduce the price? Yes. At that price, the optimal solution would produce 700 units of component 3. Yes. Every additional unit of component 3 increases profits by $3. No. There is a slack of 300 units so selling more would not improve profits. No. At that price, the optimal solution would not produce any of component 3 .