What financial and ethical considerations should be made

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Reference no: EM132683859

Question 1. Solve the following problem to find the maximum profit by creating a spreadsheet and using Solver.
A company is making Sofas and Love Seats. The sofa's profit is $1,000 and the love seats profit is $950.
There are 2 factories available to make the products.
Factory 1 requires 55 hours to make a sofa and 40 hours to make a love seat. It has 6,000 hours available.
Factory 2 requires 50 hours to make a sofa and 45 hours to make a love seat. It has 4,000 hours available.
Factory 1 needs at least 3 employees for a sofa and
2 employees for a love seat. The total minimum required is 80.
Factory 2 needs at least 2 employees for a sofa and
3 employees for a love seat. The total minimum required is 45.
The company is also willing to offer coupons to customers. The coupons can be redeemed for $25 off a sofa or $20 off a love seat. The total redemption of the coupons equals $1,800.
The maximum number of sofa's that can be produced is 75.

Case Review (answer on a Word document)
Company guidelines state that a project should not move forward if profit is less than $100,000.
Based on the results of your excel calculations, should you go forward with this project?
a. Not going forward with the project means that 15 employees will be laid off for up to 6 months. The cost of unemployment, rehiring or hiring and training new replacement employees is approximately $7,000 per position. Does this information change your decision to move forward with this project?
b. What financial and ethical considerations should be made?

Question 2. Solve the following problem to find the maximum profit by creating a spreadsheet on another tab of the spreadsheet from above.
A company is making Boats and Motors. The boats sell for $22,000 and the motors sell for $15,000.
There are 3 factories available to make the products.
Factory 1 requires 9 hours to make a boat and is not capable of making motors. It has 84 hours available.
Factory 2 does not have the capability to make boats and requires 3 hours to make a motor. It has 40 hours available.
Factory 3 requires 16 hours to make a boat and 5 hours to make a motor. It has 120 hours available.

Reference no: EM132683859

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