Chapter3-review - Questions 5-13: Hitchem’s makes four...

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Unformatted text preview: Questions 5-13: Hitchem’s makes four types of utility trailers for towing by Trucks and SUV’s. The unit profit for the four models are $24 for the Standard model (S), $40 for the Heavy Duty (H) $56 for the Plus model (P), and $72 for the Deluxe model (D). The goal is maximize profit subject to the number of wheels, steel, and assembly time available. Plus, Hithem’s has contract agreement to produce 6 Standard models. (2 points each) 5. Which constraints are binding? ________________________ 6. At what cut off value would it be beneficial to produce more Plus models? _________ 7. If Hitchem’s could purchase more wheels, what is the maximum number of wheels they would want to purchase? ______________ 8. What would be the maximum profit if the amount of steel available was equal to 126? ______ 9. How much would the profit on Heavy duty models have to increase before it would be beneficial to produce some units of the Heavy duty model? _________ 10. What would be the maximum profit if the contract required 10 Standard models to be produced? ________ 11. At what cut off value would it be beneficial to reduce the number of Deluxe models produced?...
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This note was uploaded on 03/01/2012 for the course FINANCE 780 taught by Professor Scott during the Spring '12 term at Missouri State University-Springfield.

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Chapter3-review - Questions 5-13: Hitchem’s makes four...

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