At a recent trade show,demonstration of the machinessignificant dealer intrest.

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At a recent trade show,demonstration of the machinessignificant dealer intrest. infact ,the number of orders that BFIreceived at the trade show far exceeded its manufacturingcapabilitues for the current production period . As a result ,management deceided to begin production of the two machines. Thetwo machines, which BFI named the BodyPlus 100 and theBodyPlus200, require different amounts of resources toproduce.    The BodyPluc 100 consists of a fram unit, a pressststion, and apec-dec ststion. Each frame produced uses 4hours of machining and welding time and 2 hours of painting and finishing time, and each pec-dec station uses 2 hours ofmachining and welding time and 2 hours of painting and fifihingtime. In addition , 2 hours are spent assembling, testing andpackaging each BodyPlus 100. The raw material cost are $450 foreach frame, $300 for each press station, and $250 for each pec-decstation; packaging cost are estimated to be $50 per unit.     The BodyPlus 200 consists of a frameunit, a press ststion, a pec-dec station, and a leg-press station.Each frame produced uses 5 hours of machining and welding time and4 hours of painting and finishing time. Each press ststion requires2 hours machining and welding time 2 hours of painting andfinishing time, each pec-dec station uses 2 hours of maching andwelding time and 2 hours of painting and finishing time, and eachleg-press station requires 2 hours of machining and welding timeand 2 hours of painting and fininshing time. In addition, 2 hoursare spent assembling, testing and packaging each BodyPlus 200. Theraw material costs are $650 for each frame ,$400 for each pressstation, $250 for each pec-dec station, and $200 for each leg-pressststion; packaging costs are estimated to be $75 per unit.    For the next production period, managementestimates that 600 hours of machining and welding time, 450 hoursof painting and finishing time, and 140 hours of assembly, testing,and packaging time will be availble. Current labor cost are $20 perhour for machinig and welding time, $15 per hour for painting and finishing time, and $ 12 per hour for assembly, testing, andpackaging time. The market in which the two machines must comoetesuggests a retail price of 2400 for the BodyPlus 100 and 3500 forthe BodyPlus 200, although some flexibility may be available to BFIbecause of the unique capabilities of the new machins . AuthorizedBFI dealers can purchase machines for 70 percent of the sugested retail price. BFI's president belives that the unique capabilities ofthe BodyPlus 200 can help position BFI as one of the leaders inhigh-end excerise equipment. Consequentl, he has ststed that thenumber of units of the Body Plus 200 produced must be at least 25percent of the total production. Management Report Analyze the production problem at Better Fitness, Inc., andprepare for BFI's president presenting your findings andrecommendations. Include ( but do not limit your discusion to) aconsideration of the following items: 1. What is the recommended number on BodyPlus 100 and BodyPlus200 machines to Produce. 2. How dose the requirement that the number of units of theBodyPlus 200 produced be at least 25 percent of the totalproduction affect profits. 3. Where should efforts be expended in order to increaseprofits? Include a copy of your linear programming model and graphicalsolution in an appendix to your report. At a recent trade show,demonstration of the machinessignificant dealer intrest. infact ,the number of orders that BFIreceived at the trade show far exceeded its manufacturingcapabilitues for the current production period . As a result ,management deceided to begin production of the two machines. Thetwo machines, which BFI named the BodyPlus 100 and theBodyPlus200, require different amounts of resources toproduce.    The BodyPluc 100 consists of a fram unit, a pressststion, and apec-dec ststion. Each frame produced uses 4hours of machining and welding time and 2 hours of painting and finishing time, and each pec-dec station uses 2 hours ofmachining and welding time and 2 hours of painting and fifihingtime. In addition , 2 hours are spent assembling, testing andpackaging each BodyPlus 100. The raw material cost are $450 foreach frame, $300 for each press station, and $250 for each pec-decstation; packaging cost are estimated to be $50 per unit.     The BodyPlus 200 consists of a frameunit, a press ststion, a pec-dec station, and a leg-press station.Each frame produced uses 5 hours of machining and welding time and4 hours of painting and finishing time. Each press ststion requires2 hours machining and welding time 2 hours of painting andfinishing time, each pec-dec station uses 2 hours of maching andwelding time and 2 hours of painting and finishing time, and eachleg-press station requires 2 hours of machining and welding timeand 2 hours of painting and fininshing time. In addition, 2 hoursare spent assembling, testing and packaging each BodyPlus 200. Theraw material costs are $650 for each frame ,$400 for each pressstation, $250 for each pec-dec station, and $200 for each leg-pressststion; packaging costs are estimated to be $75 per unit.    For the next production period, managementestimates that 600 hours of machining and welding time, 450 hoursof painting and finishing time, and 140 hours of assembly, testing,and packaging time will be availble. Current labor cost are $20 perhour for machinig and welding time, $15 per hour for painting and finishing time, and $ 12 per hour for assembly, testing, andpackaging time. The market in which the two machines must comoetesuggests a retail price of 2400 for the BodyPlus 100 and 3500 forthe BodyPlus 200, although some flexibility may be available to BFIbecause of the unique capabilities of the new machins . AuthorizedBFI dealers can purchase machines for 70 percent of the sugested retail price. BFI's president belives that the unique capabilities ofthe BodyPlus 200 can help position BFI as one of the leaders inhigh-end excerise equipment. Consequentl, he has ststed that thenumber of units of the Body Plus 200 produced must be at least 25percent of the total production. Management Report Analyze the production problem at Better Fitness, Inc., andprepare for BFI's president presenting your findings andrecommendations. Include ( but do not limit your discusion to) aconsideration of the following items: 1. What is the recommended number on BodyPlus 100 and BodyPlus200 machines to Produce. 2. How dose the requirement that the number of units of theBodyPlus 200 produced be at least 25 percent of the totalproduction affect profits. 3. Where should efforts be expended in order to increaseprofits? Include a copy of your linear programming model and graphicalsolution in an appendix to your report.

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