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Merton Truck Co

In: Business and Management

Submitted By NellaDoug
Words 622
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SPECIFICATIONS | MODEL 101 | MODEL 102 | Direct Materials | 24000 | 20000 | Direct Labour | Engine assembly | 1200 | 2400 | Metal Stamping | 800 | 600 | Final Assembly | 2000 | 1500 | Total Direct Labour | 4000 | 4500 | Overhead | Engine assembly | 2100 | 4000 | Metal Stamping | 2400 | 3000 | Final Assembly | 3500 | 2500 | Total Overhead | 8000 | 8500 | | Selling Price | 39000 | 38000 | Total Variable Cost | 36000 | 33000 | Contribution Margin per Unit | 3000 | 5000 | | | |

Fixed Overhead | Engine assembly | 1700000 | Metal Stamping | 2700000 | Final Assembly | 2700000 | 1500000 | Total Fixed Overhead | 8600000 |

Objective is to:
To maximise operational profit by optimally producing Model 101 and Model 102 trucks
Maximise Profit = 3000 Model 101 + 5000 Model 102
Maximize Profit =? Model 101* units Model 101 + ? Model 102* units Model 102 – Fixed Overheads

Subject to constraints:
Engine assembly 1(Model 101) + 2 (Model 102) <= 4000
Metal Stamping 2(Model 101) + 2 (Model 102) <= 6000
Model 101 assembly 2(Model 101) + 0 (Model 102) <= 5000
Model 102 assembly 0(Model 101) + 3 (Model 102) <= 4500
Nonnegative Model 101 0(Model 101) >= 0
Non Negative Model 102 0(Model 102) >= 4000

ANSWER REPORT | | | | | | | | Objective Cell (Max) | | | | | | | Cell | Name | Original Value | Final Value | | | | | $D$4 | Objectives Profit | 8000 | 11000000 | | | | | | | | | | | | | | | | | | | | Variable Cells | | | | | | | Cell | Name | Original Value | Final Value | Integer | | | | $B$3 | Variables Model 101 | 1 | 2000 | Contin | | | | $C$3 | Variables Model 102 | 1 | 1000 | Contin | | | | | | | | | | | | | | | | | | |…...

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