Company produce each week to maximize its weekly profits

Assignment Help Financial Management
Reference no: EM132068608

A company sells two types of vacuums, The L8 and the XL with a profit contribution of $90 and $125, respectively. To assemble the L8, each unit consumes 2.5 pounds of aluminum and 45 minutes of assembly time. The XL consumes 3.5 pounds of aluminum and 1.25 hours of assembly time. The company has 200 hours of labor time available each week. Their current aluminum supplier can only provide 500 pounds of the type of aluminum the company uses. How many units of each model should the company produce each week to maximize its weekly profits? (Find profit, optimals, constraints, and objective variables)

Reference no: EM132068608

Questions Cloud

What is the operating cash flow or OCF : If the tax rate is 35 percent, what is the operating cash flow, or OCF?
Calculate the expected return and variance for all assets : Calculate the expected return and the variance for all assets and determine the expected return of any portfolio obtained by mixing any of the three assets.
What is the net income for this firm : What is the net income for this firm?
Determine the net present value of the project : An existing online book retailer is considering whether to open a brick and mortar bookshop. Determine the net present value of the project.
Company produce each week to maximize its weekly profits : How many units of each model should the company produce each week to maximize its weekly profits?
Sold daily in order to break even : Use Goal Seek to compute the number of item (X) that must be sold daily in order to break even
The total nominal return on her investment : Emma purchased a designer purse five years ago for $60. The total nominal return on her investment is _____ but the real return is only ______.
How much will the annuity cost her : If the first $80,000 payment is received today, and if the annual discount rate is 8%, how much will the annuity cost her?
Annually with monthly compounding : If he earns 10% interest annually with monthly compounding, how much money will he have at the end of 20 years if he starts saving today?

Reviews

Write a Review

Financial Management Questions & Answers

  Compute the estimate profit for copper prices

XYZ mines copper, with a cost of $0.9/lb. The annual interest rate is 6%. The price of $0.95-strike put on copper is $0.0178. The price of $1-strike call is $0.0376. Compute the estimate profit for copper prices of $0, 925, $0, 975 and $1, 025 in 1 y..

  Credit card for one billing period

The activity on Daniel's credit card for one billing period is shown below. The billing period is May 1 through May 31, and the unpaid balance on May 1 was $153.75. Daniel's card has an APR of 17%. Find the average daily balance

  What is the real user cost of the building

A firm just purchased a building that cost $5 million. The nominal mortgage interest rate is 5% per annum, mortgage interest payments are tax deductible, and the firm is in a 20% tax bracket. The expected inflation rate is 3%. Maintenance expenses ar..

  What would be the taxes associated with this sale

The J. Harris Corporation is considering selling one of its old assembly machines. What would be the taxes associated with this sale?

  Asset qualifies as seven-year recovery asset under MACRS

Genetic Insights Co. purchases an asset for $11,473. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, r..

  How large is the company in relation to its competitors

How large is the company in relation to its competitors? What is the company’s price-to-earnings ratio? What does this tell you about the company?

  Conducts customer segment research

B&B has a new baby powder ready to market. Calculate the NPV for the firm if it conducts customer segment research.

  Solves problems in companies or financial institutions

How smartcontract helps and solves problems in companies or financial institutions ?

  What is the present value of this liability

Imprudential, Inc., has an unfunded pension liability of $578 million that must be paid in 20 years. To assess the value of the firm’s stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 7.1..

  Average inventory held during year including safety stock

What is the average inventory held during the year including safety stock if the store insists on a 6 days safety stock (assume 365 days a year)?

  Delta of long forward contract on one share of the stock

Find the delta of a long forward contract on one share of the stock.

  What strategy should the investor follow

The index futures price is 1,500 and contract multiplier is $50 times the index. The beta of stock is 1.4. What strategy should the investor follow?

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