Scheduled for production, Accounting Basics

Lego Toys is planning to produce new toys at its factories.  The setup cost of the production facilities, production costs and profits for each toy are given below:

Toy    Setup cost ($)       Unit Cost ($)        Selling Price ($)
1         45000                    8                       20
2         76000                   11                     25

The company has two factories that are capable of producing these toys. The production rates of each toy are given below (in units/hour):

                Toy 1          Toy 2
Factory 1      52              38
Factory 2      42              23

Factories 1 and 2, respectively, have 480 and 720 hours of production time available for the production of these toys. In addition, each of the toys requires 4 pounds of material and the total material available is 100000 pounds.  The manufacturer wants to know which of the new toys to produce, where and how many of each (if any) should be produced so as to maximize the total profit.

a.    Formulate an integer programming model by identifying decision variables and clearly expressing objective function and constraints as mathematical functions. Solve the problem in EXCEL and discuss the solution
b.    If the company has a restriction that it has to produce at least 400 units of each toy if they are scheduled for production, how does the model change? Express any additional constraints as mathematical expressions.

Posted Date: 3/15/2013 9:17:05 AM | Location : United States







Related Discussions:- Scheduled for production, Assignment Help, Ask Question on Scheduled for production, Get Answer, Expert's Help, Scheduled for production Discussions

Write discussion on Scheduled for production
Your posts are moderated
Related Questions
Prepare a trial balance All account names would be listed in left-hand column. Place the account balance in appropriate debit or credit column for those accounts which have

Q. Explain about Depreciation expense? Depreciation expense is the sum of asset cost assigned as an expense to a particular period. The method of recording depreciation expense

Q. Show Journalizing adjusting entries? Subsequent to completing Micro Train's financial statements from the work sheet you should enter the adjusting entries in the general jo

Q. Show Timing of expense recognition? The timing of expense recognition The matching principle entail that a relationship exists between expenses and revenues. For definite ex

GDYJ-503 is developed according to the national standard GB-86 Insulating Oil Dielectric Strength Testing Method .The tester can test three cups of oil at the similar time. LCD scr

In addition, assume that Anheuser-Busch InBev sold 200 million barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 40% of selling,

Q. Example of horizontal analysis? Several companies have been restructuring their organizations and reducing the number of employees to cut expenses. AT&T, General Motors, IBM

Critique the Ethics of those involved in the News of the World phone hacking scandal. Demonstrate in your critical analysis how the use of Ethics by the parties involved could have

decrease in owners equity decrease in owener''s equity

Hi, How to get help with tutor, in accounting exam prepartion? please suggest?