JAC produces two types of products (Standard and Trimline), each of which must go through three...

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Finance

JAC produces two types of products (Standard and Trimline), eachof which must go through three workstations for manufacturing,assembly, and quality control. The amount of time required for eachmodel in each of the work areas is given in the followingtable.

ModelManufacturingAssemblyQuality Control
Standard7 minutes3 minutes2 minutes
Trimline2 minutes5 minutes3 minutes

Ring Telephones employs ten workers, who each work a 7.5 hourday. Of these times, 1400 man-minutes per day have been allocatedto manufacturing, 2100 to assembly, and 1000 to quality control.Accounting has stated that the cost of each Manufacturing minute is$0.45, each Assembly minute $0.25, and each Quality Control minute$0.10, for a Standard Model. For the Trimline model, the costs are$0.55, $0.25, and $0.15, respectively. If R.T. sells for $2 thestandard models and $4 the Trimline models.

A. Formulate the model in standard form.

B. What should be the optimal daily production schedule?

Answer & Explanation Solved by verified expert
4.5 Ratings (796 Votes)
A Statement showing calculation of Profit Loss per Unit Amount in Model Standard Trimline Selling Price Per Unit 200 400 Less Cost per Unit Manufacturing 315 110 Assembly    See Answer
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Transcribed Image Text

JAC produces two types of products (Standard and Trimline), eachof which must go through three workstations for manufacturing,assembly, and quality control. The amount of time required for eachmodel in each of the work areas is given in the followingtable.ModelManufacturingAssemblyQuality ControlStandard7 minutes3 minutes2 minutesTrimline2 minutes5 minutes3 minutesRing Telephones employs ten workers, who each work a 7.5 hourday. Of these times, 1400 man-minutes per day have been allocatedto manufacturing, 2100 to assembly, and 1000 to quality control.Accounting has stated that the cost of each Manufacturing minute is$0.45, each Assembly minute $0.25, and each Quality Control minute$0.10, for a Standard Model. For the Trimline model, the costs are$0.55, $0.25, and $0.15, respectively. If R.T. sells for $2 thestandard models and $4 the Trimline models.A. Formulate the model in standard form.B. What should be the optimal daily production schedule?

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