What is the optimal solution

Assignment Help Finance Basics
Reference no: EM132826610

Embassy Motorcycles (EM) manufacturers two lightweight motorcycles designed for easy handling and safety. The EZ-Rider model has a new engine and a low profile that make it easy to balance. The Lady-Sport model is slightly larger, uses a more traditional engine, and is specifically designed to appeal to women riders. Embassy produces the engines for both models at its Des Moines, Iowa, plant.

Each EZ-Rider engine requires 6 hours of manufacturing time and each Lady-Sport engine requires 3 hours of manufacturing time. The Des Moines plant has 2100 hours of engine manufacturing time available for the next production period. Embassy's motorcycle frame supplier can supply as many EZ-Rider frames as needed.

However, the Lady-Sport frame is more complex and the supplier can only provide up to 280 Lady-Sport frames for the next production period.

Final assembly and testing requires 2 hours for each EZ-Rider model and 2.5 hours for each Lady-Sport model. A maximum of 1000 hours of assembly and testing time are available for the next production period.

The company's accounting department projects a profit contribution of $2400 for each EZ-Rider produced and $1800 for each Lady-Sport produced.

-Formulate a linear programming model that can be used to determine the number of units of each model that should be produced in order to maximize the total contribution to profit.

-Solve the problem graphically. What is the optimal solution?

-Which constraints are binding?

Reference no: EM132826610

Questions Cloud

What ethical issues do you believe are present : What ethical issues do you believe are present in these procedures and how does the SOX Act address these concerns
Identify a combination of 10 internal and external factors : As a manager in health care, it is important that you understand what environmental factors can affect your organization.
What would the stocks price be if growth was five percent : The required rate of return is 11%. Other things held constant, what would the stocks' price be if the growth was 5%? Round to 2 decimal places.
Explain criterion and norm-referenced test interpretation : Explain the difference between criterion and norm-referenced test interpretation. Make sure to list at least two different tests that use these types of.
What is the optimal solution : Embassy Motorcycles (EM) manufacturers two lightweight motorcycles designed for easy handling and safety. The EZ-Rider model has a new engine and a low profile
How can a manager influence the budgeting process : How can a manager influence the budgeting process and ensuring budgetary numbers in unethical ways? Are there ways to identify and control this type of behavior
Why you would promote the approaches to assessment : Discuss why you, as a program administrator, would promote these approaches to assessment in an early childhood program you were administering.
What are monthly car payments : If you can negotiate a nominal annual interest rate of 10% and you wish to pay for the car over a 5-year period, what are your monthly car payments?
Why the design of a table or a form is important : Why the design of a table or a form is important? Why accountant has to have sufficient knowledge about database and data modeling

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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