Corporation manufactures two electrical products

Assignment Help Financial Management
Reference no: EM131859527

The Electrocomp Corporation manufactures two electrical products: air conditioners and large fans. The assembly process for each is similar in that both require a certain amount of wiring and drilling. Each air conditioner takes 3 hours of wiring and 2 hours of drilling. Each fan must go through 2 hours of wiring and 1 hour of drilling. During the next production period, 240 hours of wiring time are available and up to 140 hours of drilling time may be used. Each air conditioner sold yields a profit of $25. Each fan assembled may be sold for a $15 profit.

Now, Electrocomp’s management also realizes that there should be a minimum number of air conditioners produced in order to fulfill a contract. Also, due to an oversupply of fans in the preceding period, a limit should be placed on the total number of fans produced.

1. If Electrocomp decides that at least 20 air conditioners should be produced but no more than 80 fans should be produced, the optimal production mix of air conditioners and fans is __________. (The first number is for air conditioners and the second for fans.)

A. (50,30)

B. (20,80)

C. (40,60)

D. (26.67,80)

2. In the optimal solution for the above question (Question 1), the slack for the four constrains — Total hours of wiring, Total hours of drilling, Number of air conditioners, Number of fans are __________, respectively. (Hint: A negative number shows that the constraint is binding downward, i.e. it sets a lower rather than an upper limit. You may take the negative sign out when interpreting the results.)

A. 0, 0, 20, 20

B. 0, 0, 10, 20

C. 0, 0, 20, 10

D. 10, 10, 10, 10

3. If Electrocomp decides that at least 30 air conditioners should be produced but no more than 50 fans should be produced, the optimal production of air conditioners is ______ and the optimal production of fans is _______ . (Please only enter an integer and include no units.)

4. In the optimal solution for the above question (Question 3), the slack for the four constrains — Total hours of wiring, Total hours of drilling, Number of air conditioners, Number of fans are __________, respectively. (Hint: A negative number shows that the constraint is binding downward, i.e. it sets a lower rather than an upper limit. You may take the negative sign out when interpreting the results.)

A. 0, 0, 15, 10

B. 5, 0, 15, 0

C. 0, 5, 15, 0

D. 0, 0, 10, 15

Reference no: EM131859527

Questions Cloud

Put option in which the stock price : A put option in which the stock price is $60 and the exercise price is $65 is said to be
Derive the price of preferred stock : Derive the price of the preferred stock in the 2 cases where it is callable and in 5 years when it becomes non-callable.
Make equal payments at the beginning of each year : You bought an annuity selling at $12,131.06 today that promises to make equal payments at the beginning of each year for the next 6 years (N).
Compute the forward discount or premium for canadian dollar : Compute the forward discount or premium for the Canadian dollar whose 90-day forward rate is $1.2785 and spot rate is $1.2536.
Corporation manufactures two electrical products : The Electrocomp Corporation manufactures two electrical products: air conditioners and large fans.
How much should monthly deposits be for retirement plan : The fund will continue to earn 10% compounded monthly. How much should the monthly deposits be for his retirement plan?
Considering investing in private company : You are considering investing in a private company that is owned by a friend of yours.
What is the value of growing perpetuity : The payments are expected to go on indefinitely. Your relevant interest rate is 9%. What is the value of the growing perpetuity?
Interest are you going to pay over the life of loan : Assuming that you make the payments according to the schedule, how much total interest are you going to pay over the life of the loan?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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