Calculate minimum increase in a-crew costs necessary to dch

Assignment Help Macroeconomics

Reference no: EM13200479

Delmar Custom Homes (DCH) uses two types of crews on its Long Island, NY, home construction projects. Type A crews consist of master carpenters and skilled carpenters, whereas B crews include skilled carpenters and unskilled labor. Each home involves framing (F), roofing (R), and finish carpentry (FC). During recent months, A crews have demonstrated a capability of framing one home, roofing two, and doing finish carpentry for no more than four homes per month. Capabilities for B crews are framing three homes, roofing two, and completing finish carpentry for one during a month. DC has agreed to build ten homes during the month of July but has subcontracted 10 percent of framing and 20 percent of finish carpentry requirements.Labor costs are $60,000 per month for A crews and $45,000 per month for B crews.

A) Formulate the linear programming problem that DCH would use to minimize its total labor costs per month, showing both the inequality and equality forms of the constraint conditions.

B) Solve the linear programming problem and interpret your solution values.

C) Assuming that DCH can both buy and sell subcontracting services at prevailing prices of $8,000 per unit for framing and $14,000 per unit of finish carpentry, would you recommend that the company alter its subcontracting policy? If so, how much could the company save through a change?

D) Calculate the minimum increase in A-crew costs necessary to cause DCH to change its optimal employment combination in July.

Reference no: EM13200479

Questions Cloud

Identify the population of interest to the researcher : He found that the average number of semester units completed was 12.96 units per student. Identify the population of interest to the researcher.

The framers of the constitution favored bicameralism : The Framers of the Constitution favored bicameralism because

At what rate is the distance between the cars : Two cars start moving from the same point. one travels south at 30 mi/h and the other travels west at 70 mi/h. At what rate is the distance between the cars increasing 2 hours later?

To derive the marginal cost (mc) or average total cost (atc) : For the total variable cost (TVC), draw a positive total fixed cost (TFC) and total cost (TC) curves. Then derive the associated marginal cost (MC), average total cost (ATC), average variable (AVC).

Calculate minimum increase in a-crew costs necessary to dch : Delmar Custom Homes (DCH) uses two types of crews on its Long Island, NY, home construction projects. Type A crews consist of master carpenters and skilled carpenters, whereas B crews include skilled carpenters and unskilled labor.

State against the same wind when returning : An airplane flies between two cities 650 kilometers apart, traveling with a wind of 35 miles per hour going, and against the same wind when returning

Determine those lengths for which a package is acceptable : An overnight delivery service accepts packages of up to 165 inches in length and girth combined. (Girth is the distance around the package.) A package has a fixed girth of 53 inches. Determine (in terms of an inequality) those lengths for which a ..

Common effect produced by hypnosis : Which of the following is not a common effect produced by hypnosis?

How much will it be to build a 90ft tower : a tower is being built with the labor of $100 for the first 10ft and after that $25 per 10ft. How much will it be to build a 90ft tower?

User Account

All Pages