MSA ComputerCorporation manufactures two models of minicomputers, the Alpha 4and
ID: 2444378 • Letter: M
Question
MSA ComputerCorporation manufactures two models of minicomputers, the Alpha 4and the Beta 5. The firm employs 5 technicians, working 160 hourseach per month, on its assembly line. Management insists that fullemployment (that is, all 160hours of time) be maintained for each worker during nextmonth’s operations. It requires 20 labor-hours to assembleeach Alpha 4 computer and 25 labor-hours to assemble each Beta 5model. MSA wants to see at least 10 Alpha 4s and at least 15 Beta5s produced during the production period. Alpha 4s generate a $900profit per unit, and Betas yield $1,800 each.
Determine themost profitable number of Alpha-4 model of minicomputer to produceduring the coming month.
Round youranswer to 2 decimal places; for example, 12.34 .
Determine themost profitable number of Beta-5 model of minicomputer to produceduring the coming month.
Round youranswer to 2 decimal places; for example, 12.34 .
What is theoptimal profit?
Round youranswer to the nearest whole number; forexample, 12,345 .
MSA ComputerCorporation manufactures two models of minicomputers, the Alpha 4and the Beta 5. The firm employs 5 technicians, working 160 hourseach per month, on its assembly line. Management insists that fullemployment (that is, all 160hours of time) be maintained for each worker during nextmonth’s operations. It requires 20 labor-hours to assembleeach Alpha 4 computer and 25 labor-hours to assemble each Beta 5model. MSA wants to see at least 10 Alpha 4s and at least 15 Beta5s produced during the production period. Alpha 4s generate a $900profit per unit, and Betas yield $1,800 each.
(a) Determine themost profitable number of Alpha-4 model of minicomputer to produceduring the coming month.
Round youranswer to 2 decimal places; for example, 12.34 .
(b) Determine themost profitable number of Beta-5 model of minicomputer to produceduring the coming month.
Round youranswer to 2 decimal places; for example, 12.34 .
(c)What is theoptimal profit?
Round youranswer to the nearest whole number; forexample, 12,345 .
Explanation / Answer
A) 10 B) 24 C) $ 52,200 Explanation Total labor hours available = 160 * 5 = 800 hrs Out of the 800 hrs , 200 hrs are used for alpha-4 model ( 20hrs perpiece * 10 units = 200 hrs) Hours remaining for Beta 5 model is 800 -200 = 600 hrs. No. of beta-5 produced in 600 hrs = 600/ 25 = 24 beta models. 900 X1 + 1800 X2 = maximizing profit 900(10) +1,800(24) = 52,200
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