Charles Watts Electronics manufactures the following six peripheral devices used
ID: 446254 • Letter: C
Question
Charles Watts Electronics manufactures the following six peripheral devices used in computers specially designed for jet fighter planes: internal modems, external modems, graphics circuit boards, USB memory stick, hard disk drives, and memory expansion boards. Each of these technical products requires time, in minutes, on three types of electronic testing equipment as shown in the following table:
testing device1
The first two test devices are available 130 hours per week. The third (device 3) requires more preventive maintenance and may be used only 100 hours each week. Watts Electronics believes that it cannot sell more than 2000, 1500, 1800, 1200, 1000, 1000 units of each device, respectively. Thus, it does not want to produce more than these units. The table that follows summarizes the revenues and material costs for each product:
In addition, variable labor costs are $15 per hour for test device 1, $12 per hour for test device 2, and $18 per hour for test device 3. Watts Electronics wants to maximize its profits.
What is the best the product mix?
What is the value of an additional minute of time per week on:
test device 1?
test device 2?
test device 3?
Should Watts Electronics add more test device time? if so, on which equipment?
Internal modem External modem Circuit Board Jump drive Hard drive Memory boardtesting device1
7 3 12 6 18 17 testing device2 2 5 3 2 5 17 testing device3 5 1 3 2 9 2Explanation / Answer
Charles Watts Electronics manufactures the following six peripheral devices used