Sam's Sawmill Makes Two Products

question 71

Essay

Sam's Sawmill makes two products.One product is a wood bench (B)and the other product is a wood stool (S).Sam has a sawmill,so having the right material on hand is never a problem.However,production is limited.Sam's brother Chris is the carpenter,and he cannot work more than 240 hours a month.It takes Chris 4 hours to make a bench and 3 hours to make a stool.Sam had a limited budget,so he installed a small paint booth for staining the products.Sam does the painting,but he only has 100 hours a month available.It takes Sam 2 hours to paint a bench and 1 hour to paint a stool.Sam makes $7 for every bench and $5 profit for every stool.
What are the constraints for Sam's Sawmill in terms of Chris's time and Sam's time?

---

Definitions:

Market Signaling Device

Methods or activities used by firms or individuals to convey information about the quality or features of a product or service to the market.

Worker Ability

The skills, talent, or capacity that an employee possesses, which can determine their effectiveness in performing job tasks.

Time Management

The process of organizing and planning how to divide one's time between various activities to increase effectiveness, efficiency, or productivity.

Warranties

Legal guarantees from sellers that the product will meet certain quality and reliability standards, and offering repair or replacement if it does not.