Find the maximum possible profit

Assignment Help Operation Management

Reference no: EM13966318

The seasonal yield of olives in a Piraeus, Greece, and vineyard is greatly influenced by a process of branch pruning. If Olive trees are pruned every two weeks, output is increased. The pruning process, however, requires considerably more labor then permitting the olive grow on their own and result in a smaller size olive. It also, though, permits olive trees to be spaced closer together. They yield of 1 barrel of olives by pruning requires 5 hours of labor and 2 acres of land. The production of a barrel of olives by the normal process requires only 4 labor hours but takes 8 acres of land. An olive grower has 780 hours of labor available and a total of 460 acres for growing. Because of the olive size difference, a barrel of olives produced on pruned trees sells for $ 42, whereas a barrel of regular olives has a market price of $ 30. The grower has determined that because of uncertain demand, no more than 80 barrels of pruned olives should be produced.

Use the graphical method to find.

(a)The maximum possible profit.

(b)The best combination of barrels of pruned and regular olives.

(c)The number of acres that the olive grower should devote to each growing process.

Reference no: EM13966318

Questions Cloud

Marketing mix and market segmentation-leadership : What are (or were) key factors behind Twitter’s early success? What are current threats, opportunities? • When answering this question, please perform a SWOT of Twitter using at least any 3 of the following organizational functions: 1) marketing mix ..

Manufactures-distributes small household electronic items : Assume that your company manufactures and distributes small household electronic items such as iron boxes, microwaves, toasters, mini-ovens, electric frying machines, etc. As of today the company has operations in Europe, North America, and Africa. D..

Determine the equivalent units of production for material : The Cutting Department of Keigi Company has the following production and cost data for August. Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Keigi Company uses the FIFO method to co..

What power is generated if the turbine efficiency : The discharge of water through this turbine is 1000 cfs. What power is generated if the turbine efficiency is 85% and the total head loss is 4 ft? Also, carefully sketch the EGL and the HGL.

Find the maximum possible profit : The seasonal yield of olives in a Piraeus, Greece, and vineyard is greatly influenced by a process of branch pruning. If Olive trees are pruned every two weeks, output is increased. Use the graphical method to find The maximum possible profit. The be..

How should murderers be punished : Is murder always wrong or should there be exceptions to the rule? What would these exceptions look like? How should murderers be punished?

Robinson corp. makes a loan to susan co. : Robinson Corp. makes a loan to Susan Co. and receives in exchange a four-year, $40,000 note bearing interest at 10 percent annually on December 31, 2015

Understanding of key business processes of a company : Understanding of key business processes of a company that hires you to provide financial services.

Considering an expansion of production : BagCo produces leather jackets and handbags. A jacket requires a 8 m^2 of leather, and a handbag only 2 m^2. The labor requirements for the two products are 12 and 5 hours, respectively. Determine the optimum solution. BagCo is considering an expansi..

User Account

All Pages