Reference no: EM132649558

The Heinrich Company manufactures two types of plastic hanger racks (Foldaways and Straightaways) especially suited for mounting near clothes dryers. Because permanent press clothing must be hung on hangers immediately after removal from the dryer, these items have been especially popular. However, there is some concern that the Preppie movement (popularized by its own handbook) will extinguish polyester clothing; Heinrich is terribly interested in doing the best with the resources it has while its products are still in demand. The first type of hanger rack, the Foldaway, requires 10 ounces of plastic material and 0.3 hours of labor. Plastic costs Heinrich 10 cents an ounce; labor costs Heinrich $20 per hour. The second type of hanger rack, the Straightaway, requires 15 ounces of plastic and 0.175 hours of labor. The prices of these resources are the same as those for the Foldaway. Under current market conditions, Heinrich can sell the Foldaway for $12 and the Straightaway for $11. Heinrich is unable to hire more than 350 hours of labor a week, or buy more than 50,000 ounces of plastic a week.

Question 1: How many Foldaways and Straightaways should Heinrich produce to maximize their profit.

Foldaway Straightaway Total

Constraint Unit                                                    2000                                3

Plastic                    10               15                     30000          50000            4

Labor Hour             0.3               0.175               350              350                5

Revenue              12                   11                  22000                             7

Cost                                                           10000                               8

Profit                                                        12000                9                  10