Reference no: EM132656906
Susan Shi owns TestTutor, an educational tutoring center in Greenville, South Carolina. The center offers private tutoring in math, writing, and science. Information about the tutoring sessions is as follows:
Math Writing Science
Session price $34 $50 $25
Variable labor costs 20 30 10
Variable supplies cost 2 2 1
Session length 45 minutes 90 minutes 30 minutes
Number of sessions demanded per week 140 260 130
Since the company opened five years ago, demand has grown faster than the supply of qualified tutors. Susan currently has enough tutors to provide only 420 hours of tutoring each week.
Problem 1: Suppose Susan has enough tutors lined up to provide 600 hours of tutoring each week. However, the building she currently leases has no room for expansion; when fully scheduled, it can accommodate only 420 tutoring hours each week. What is the constrained resource? How can Susan overcome the constraint to meet the current demand for her services and provide room for future growth?