Optimal production strategy that maximizes the weekly profit

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George's Woodcarving Company manufactures two types of wooden toys: soldiers and trains. A soldier sells for $27 and uses $10 worth of raw materials. Each soldier manufactured increases George's variable labor and overhead costs by $14. A train sells for $21 and uses $9 worth of raw materials. Each Train built increases George's variable labor and overhead costs by $10. The manufacture of wooden soldiers and trains requires two types of skilled labor: carpentry and finishing. A soldier requires 3 hours of carpentry labor and 2 hours of finishing labor. A train requires 4 hours of carpentry labor and 1 hour of finishing labor. Each week, George's can obtain all the needed raw material but only 240 carpentry hours and 100 finishing hours. Demand for trains is unlimited, but at most 40 soldiers are bought each week. George wishes to maximize weekly profit (revenue – costs. The company wants to find out the optimal production strategy that maximizes the weekly profit.

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Reference no: EM131681138

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