Question

Please answer the following question based on the information given. A warehouse needs to produce two types of fixtures. They have to fulfill an order for Lowe's and there is no limit to how much they can produce. The goal is to make the most profit that we can. Assume that all fixtures made will be sold. For purposes of this analysis consider that overhead and other items are included in the cost to produce each fixture.

So how many units of type A and type B do we produce each day?

What is the projected number of units for the 30-day production run (by type and total)?

What is the projected profit each day?

What is the projected total profit for the 30-day production run?

Information for these questions:

** For each Type A fixture we need 4 hours of assembly; 3 cu ft of storage until shipped; and 2 hours of inspection.

** For each Type B fixture we need 10 hours of assembly 3 cu ft of storage; 1 hour of inspection;

** Each day the warehouse currently has 39 cu ft of storage; 22 hours of inspections; and 100 hours of assembly.

** We estimate that Type A fixture will cost $540 to produce. Type B fixture is $850.

** Type A fixture will sell retail for $600. Type B fixture will sell to Lowe’s for $900

Answer 1