The price of narrow bookcases is going up

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The Bogard Corporation produces three types of bookcases, which it sells to large office supply companies. The production of each bookcase requires two machine operations, trimming and shaping, followed by assembly, which includes inspection and packaging. Each type requires 0.4 hours of assembly time, but the machining operations have different processing times, as shown in the table below (in hours per unit). Each machine is available for 150 hours per month, and the current size of the assembly department provides capacity of 200 hours. Each bookcase produced yields a unit profit contribution as shown below. Standard Narrow Wide

Trimmer 0.2 0.4 0.6

Shaper 0.6 0.2 0.5

Profit $8 $6 $10

QUESTION: The price of Narrow bookcases is going up. At what price point would a new optimal solution have to be determined?

Reference no: EM131732086

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