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hram777 [196]
2 years ago
6

Hart Manufacturing makes three products. Each product requires manufacturing operations in three departments: A, B, and C. The l

abor-hour requirements, by department, are as follows: Department Product 1 Product 2 Product 3 A 2.00 1.50 3.00 B 2.50 2.00 1.00 C 0.25 0.25 0.25 During the next production period the labor-hours available are 450 in department A, 350 in department B, and 50 in department C. The profit contributions per unit are $30 for product 1, $25 for product 2, and $28 for product 3. Formulate a linear programming model for maximizing total profit contribution. If the constant is "1" it must be entered in the box. If required, round your answers to two decimal places. Let Pi = units of product i produced
Business
1 answer:
Serjik [45]2 years ago
8 0

Answer:

Objective function:

Maximize Z: 30P1 + 25P2 + 28P3

Subject to:   2.00P1 + 1.50P2 + 3.00P3 ≤ 450 (Department A constraint)

                    2.50P1  + 2.00P2 + P3       ≤ 350 (Department B constraint)

                    0.25P1  + 0.25P2 + 0.25P3 ≤ 50  (Department C constraint)

                           P1, P2, P3                       ≥  0 (Non-negativity)

Explanation:

The objective function is formulated from the contribution margin of the three products. For instance, the contribution of Product 1 is $30, the contribution of Product 2 is $25 and the contribution of Product 3 is $28. Thus, the objective function will be 30P1 + 25P2 + 28P3.

The constraints were obtained from the departmental labour hours requirements for each product. For instance, Product 1 requires 2 hours in department A, Product 2 requires 1.50 hours in department A and Product 3 requires 3 hours in Department A. Thus, the constraint will be 2.00P1 + 1.50P2 + 3.00P3.

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Answer:

A particular product line is most likely to be dropped when:

  • its total fixed costs are more than its contribution margin
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  • its unavoidable fixed costs are more than its contribution margin.

Explanation:

The aim of every producer is to maximize profit and to make this possible, the cost of producing a particular product should fall below the contribution margin.

In the case that the gross profit is always negative due to high cost of production, further production should be discouraged.

The decision to drop a particular product line is usually reached when:

  • Its total fixed costs are more than its contribution margin: Here, the company will run at a loss. It is sustainable to continue production..
  • Its variable costs are more than its fixed costs: This is also an unfavorable situation that does not sustain mass production. Therefore, further production should discontinue.
  • its unavoidable fixed costs are more than its contribution margin: At this rate, profit cannot be maximized. It is a lose-lose situation for the company.
8 0
2 years ago
During the current year, Swallow Corporation, a calendar year C corporation, has the following transactions. Income from operati
Free_Kalibri [48]

Answer:

a. Taxable Income = $42,000

b. Taxable Income = $28,000

Explanation:

Given

Income from operations $660,000

Expenses from operations $760,000

Dividends received from Brown Corporation $240,000

a.

Taxable Income is calculated

Dividend received + Income from operations - Expenses from Operations

Taxable Income = $240,000 + $660,000 - $760,000

Taxable Income = $140,000

Swallow Corp owns 12% of Browns Corporation stock;

And 12% is not up to 20% owned by Browns Corporation.

So. The Dividend Received is 70% of $140,000

Dividend = $98,000

Taxable Income = $140,000 - $98,000

Taxable Income = $42,000

b.

Dividend Received + Taxable Income (ii) = Taxable Income (i)

Where Taxable Income (I) = $140,000

Calculating Dividend

Dividend = 80% of $140,000

Dividend = $112,000

Taxable Income = $140,000 - $112,000

Taxable Income = $28,000

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2 years ago
Priscilla Presley and investment manager Jack Snowden formed _____________ on June 7, 1982 to conduct business and manage the as
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Enterprises or EPE was what was formed (sorry didn’t want to phrase it weird like that but you have to have 20 or more characters)
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2 years ago
A private pilot wishes to insure his airplane for$200,000. The insurance company estimates that a total loss will occur with pro
Finger [1]

Answer:

The answer is: $6,900

Explanation:

To determine how much the insurance company should charge, we must first calculate the amount of money they expect to pay:

  • total loss $200,000 x 0.002 = $400
  • 50% loss $100,000 x 0.01     = $1,000
  • 25% loss $50,000 x 0.1         = $5,000

                                                 Total  $6,400

If the insurance company expects to pay $6,400 per year, they will have to charge $6,900 ($6,400 + $500) to cover their expenses and earn a $500 profit.

4 0
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A borrower is interested in comparing the monthly payments on two otherwise equivalent 30 year FRMs. Both loans are for $100,000
Sergio039 [100]

Answer: $98.36

Explanation:

Based on the information that has already been given in the question, the following can be analysed:

For Loan 1:

Interest Rate = 7%

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Present value = $100000

With the above information, we can use the Excel calculator to solve further. To get the monthly payment for the first loan will be:

= pmt(rate, nper, pv,fv)

= pmt(7%/12,30×12,-100000,0)

= pmt(0.07/12,360,-100000,0)

= $665.30

For Loan 2:

Interest Rate = 7%

Nper = 30

Present value = $100000

Future value = $120000

With the above information, we can use the Excel calculator to solve further. To get the monthly payment for the first loan will be:

= pmt(rate, nper, pv,fv)

= pmt(7%/12,30×12,-100000,120000)

= pmt(0.07/12,360,-100000,120000)

= $566.94

The difference in the monthly payments will be:

= $665.3 - $566.94

= $98.36

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