27) Apple makes three models of the iPOD (Shuffle, Nano, and Touch). The selling
ID: 464064 • Letter: 2
Question
27) Apple makes three models of the iPOD (Shuffle, Nano, and Touch). The selling prices per unit are $49, $149 and $229, respectively for each model. Apple manufacture these three versions at labor cost per unit of $5, $10 and $12, respectively for each model. Each model has increasing amount of memory (GB). The Shuffle has 2GB, Nano has 16GB and the Touch has 64GB. A GB of memory has an electronic material cost of $2. If Apple only has 30,000 GB of electronic memory material available per month how many of each iPOD model should be produce to maximize the total profit?
Explanation / Answer
Shuffle i POD Cost=$49, Nano I pod cost=$149 and Touch IPOD cost=$229.
Labor Cost for Shuffle=$5, Labor Cost for Nano is=$10 and Labor cost for Touch is =$12 for each of the Mobile manufactured.
Shuffle has=2GB Nano has 16 GB and Touch has 64GB.
1 GB memory has an electronic Material Cost of $2.
If Apple has only 30,000 GB of electronic material in a month.
How many Each IPOD model Should be produced to maximise the cost.
Selling Price is $49/5=$9.8,$149/10=$14.9 and $229/12=$19.08
$9.8+ $14.9+$19.08/2=$21.89
30,000+21.89*100= 300 for each model that is 300 for Shuffle,300 for Nano and 300 for touch in all 900 mobiles have to be manufactured with the 30,000 GB memory.