Firms profitability is altered by product mix

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Reference no: EM131305901

Supertronics Inc. would like to know how the firm’s profitability is altered by product mix. Currently, product mix is determined by giving priority to the model with the highest per unit contribution margin. Details on the Supertronics product line (including processing time at each workstation) follow:

Model

A B C D

Price: $350 $320 $400 $500

Material Cost: $50 $40 $125 $150

Weekly Demand in Units: 100 60 50 80

Processing time sation 1 in minutes: 20 0 40 10

Processing time station 2 in minutes: 25 20 0 50

Processing time station 3 in minutes: 0 20 60 30

The firm assumes that each station is available for 6000 minutes per week.

Requirement 1:provide your profit-maximizing LP formulations (state the objective function and constraints)

Requirement 2:provide the Excel Solver solution in a screen capture for the problem.

Reference no: EM131305901

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