Answer Happy

PQ Problem: LCB-Balsa, Inc. produces two models
of toy airplanes, for which the relevant data are summarized
below:
All data are per unit of product
Toy Airplane “P”
Toy Airplane “Q”
Selling price
39 $/unit
42 $/unit
Labor required
0.75 hour/unit
1 hour/unit
Machining time required
1.5 hour/unit
0.8 hour/unit
Raw material required per unit
2 bf/unit
1 bf/unit
Maximum weekly demand
160 units
100 units
Each week, up to 440 board feet (bf) of raw material is
available at a cost of $4.5/bf. The company employees four workers,
who work 40 hours per week for a total regular-time labor supply of
160 hours per week. They work regardless of production volumes so
their salaries are treated as a fixed cost; the wage rate is
10$/hour, per worker. There are 320 hours per week of machining
time available (if useful, you can think that each worker can
operate two machines concurrently). The relevant weekly operating
cost for 320 hours of machine time is only 1000$, corresponding to
a low cost rate = 3.125$/hour of machine time.