Scheduled for production, Accounting Basics

Assignment Help:

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.


Related Discussions:- Scheduled for production

Uses of accounting, uses of accounting as a software enginner

uses of accounting as a software enginner

Dividends account, The Dividends account increases (debited) as well as an ...

The Dividends account increases (debited) as well as an asset cash decreases (credited) by USD 3000. Transaction 15 brings to a close the analysis of the Micro Train Company transa

How many kilograms of lobster must catch per day, A lobster catcher spends ...

A lobster catcher spends $12 500 per month to maintain a lobster boat.  He plans to catch an average of 20 days per month during lobster season.  For each day, he must allow approx

Define non-operating revenues, Q. Define Non-operating revenues? Non-op...

Q. Define Non-operating revenues? Non-operating revenues or other revenues and non-operating expenses or other expenses are revenues and expenses not related to the sale of pro

Trading security, Glaser Services obtained 30% of the outstanding common st...

Glaser Services obtained 30% of the outstanding common stock of Nickels Company on January 1, 2008, by paying $864,180 for the 48,010 shares. Nickels stated and paid $0.50 per shar

A physical inventory on december 31 shows 2, a physical inventory on decemb...

a physical inventory on december 31 shows 2,000 units on hand. holliday sells the units for $12 each. the company has an effective tax rate of 20%. holliday uses the periodic inv

Cash equivalents and investments, Q. Cash equivalents and investments? ...

Q. Cash equivalents and investments? Cash as well as cash equivalents consist of cash on hand and marketable securities with original maturities of three months or less. SFA

What is instance financial reporting, Q. What is Instance financial reporti...

Q. What is Instance financial reporting? For instance financial reporting should - Provide information concerning an enterprise's past performance because such information i

What is accumulated depreciation, Q. What is Accumulated depreciation? ...

Q. What is Accumulated depreciation? Accumulated depreciation is a contra asset account to depreciable assets such like machinery, buildings and equipment. This account illustr

Adjusting entries, Hugo Company has a five-day workweek and pays salaries o...

Hugo Company has a five-day workweek and pays salaries of $35,000 each Friday. 1. Prepare the adjusting entry required on May 31, assuming that June 1 falls on a Wednesday. 2. Prep

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd