In-class assignment Assume you need to hire a manager for a production! . You wa
ID: 1712560 • Letter: I
Question
In-class assignment Assume you need to hire a manager for a production! . You want to maximize your profits and can two types of products: -Concrete blocks (each unit generates $3.00 of profit) -Ceramic tiles (each unit generates S2.00 of profit) Copyright 2014 Hakob Avetisyan 38 In-class assignment You have certain limitations though! Can sell up to 1000 concrete blocks and 2000 ceramic tiles at a given time interval -Have unlimited material and limited amount of skilled labor available for: Procedure 1- 101.5 hours .Procedure 2 -80.5 hoursExplanation / Answer
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I will write all the details first in tablular form for understadning it more clear.
From this table, now we can find out the maximum profit easily.
Available time is given for both the procedures.
For Procedure 2, since 1hr is required for unit of concrete and the same is for ceramic tile.So take only concrete blocks for maximum profit.
Therefore maximum profit from procedure 2 = 3 * 80 = 240 dollars.
For procedure 1, maximum profit is when only ceramic tiles are sold, because concrete block in 2 hrs process gives profit of 3 dollars i.e, for 1 hr it gives 1.50 dollars profit which is 0.50 dollars less than ceramic tiles.
Therefore maximum profit = 101*2 = 202 dollars.
Thus we can conclude, procedure 2 is better than 1.
procedure1 procedure 2 max. sell quantity profit per qty. concrete block 2hr 1hr 1000 3 ceramic tile 1hr 1hr 2000 2 time available 101.5hrs 80.5 hrs