Duo Company manufactures two products, Uno and Dos. Contribution margin data follow. UnoDosUnit sales$13.00$31.00Less variable cost:Direct...
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Duo Company manufactures two products, Uno and Dos. Contribution margin data

follow.

 

 Uno DosUnit sales$13.00  $31.00 Less variable cost:       Direct material$7.00  $5.00 Direct labor 1.00   6.00 Variable overhead 1.25   7.50 Variable selling and administrative cost 0.75   0.50 Total variable cost$10.00  $19.00 Unit contribution margin$3.00  $12.00 

 

Assume that the direct-labor rate is $24 per hour, and 10,000 labor hours are available per year. In addition, the company has a short supply of machine time. Only 8,000 hours are available each year. Uno requires 1 machine hour per unit, and Dos requires 2 machine hours per unit.

 

Required:

Formulate the production planning problem as a linear program, assuming X, Y ≥ 0. X denotes Uno and Y denotes Dos.

 

  1. Identify the objective function.
  2. Identify the constraints.

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Top Answer

1. Objective function : Maximize Z = 3X + 12Y 2.... View the full answer

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