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A company produces two products that are processes on two assembly lines. Assembly line 1 has 100 available hours, and assembly line 2 has 42 available hours. Each product requires 10 hours of processing time online 1, while on line 2 product 1 requires 7 hours and product 2 requires 3 hours. The profit for product 1 is $6 per unit, and the profit for product 2 is $4 per unit.
a. Formulate a linear programming model for this problem.b. Solve this model by using graphical analysis.
Should companies automatically grant adjustments? For example, some consumers buy a video camera or a dress for a special event also returns the product afterwards. Illustrate what safeguards could be implemented?
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A corporation has total fixed costs of $180,000 and a contribution margin ratio of 30%. Explain how much sales are necessary to break even?
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