Consider the Following Linear Program, Which Maximizes Profit for Two

question 86

Short Answer

Consider the following linear program, which maximizes profit for two products--regular (R) and super (S):
MAX 50R + 75S
s.t.
   1.2 R + 1.6 S ? 600 assembly (hours)
   0.8 R + 0.5 S ? 300 paint (hours)
.   16 R + 0.4 S ? 100 inspection (hours)
Sensitivity Report:
$\begin{array}{ccccccc}\text { Cell } & \text { Name } & \begin{array}{c}\text { Final } \\\text { Value }\end{array} & \begin{array}{c}\text { Reduced } \\\text { Cost }\end{array} & \begin{array}{c}\text { Objective } \\\text { Coefficient }\end{array} & \begin{array}{c}\text { Allowable } \\\text { Increase }\end{array} & \begin{array}{c}\text { Allowable } \\\text { Decrease }\end{array} \\\hline \$ \mathrm{~B} \$ 7 & \text { Regular }= & 291.67 & 0.00 & 50 & 70 & 20 \\\hline \text { \$C } \$ 7 & \text { Super }= & 133.33 & 0.00 & 75 & 50 & 43.75 \\\hline\end{array}$



$\begin{array}{llrccc}\text { Cell } \quad \text { Name } & \begin{array}{c}\text { Final } \\\text { Value }\end{array} & \begin{array}{c}\text { Shadow } \\\text { Price }\end{array} & \begin{array}{c}\text { Constraint } \\\text { R.H. Side }\end{array} & \begin{array}{c}\text { Allowable } \\\text { Increase }\end{array} & \begin{array}{c}\text { Allowable } \\\text { Decrease }\end{array} \\\hline \$ \mathrm{E} \$ 3 \text { Assembly (hr/unit) } & 563.33 & 0.0 \mathrm{C} & 600 & 1 \$\mathrm{E}+30 & 36.67 \\\hline \$\mathrm{E} \$ 4 \text { Paint (hr/unit) } & 300.00 & 33.33 & 300 & 39.29 & 175 \\\hline \$\mathrm{E} \$ 5 \text { Inspect (hr/unit) } & 100.00 & 145.83 & 100 & 12.94 & 40\end{array}$
-The optimal number of regular products to produce is ________, and the optimal number of super products to produce is ________, for total profits of ________.

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Definitions:

Internal Control Procedure

Processes undertaken by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Bank Reconciliation

The method of aligning and scrutinizing the numbers in financial records with the ones shown on a bank statement.

Aging of Accounts Receivable

A method used to categorize accounts receivable based on the length of time an invoice has been outstanding, helping to determine credit and collection policies.

Allowance for Doubtful Accounts

A contra asset account used to estimate the portion of a company's accounts receivable that may not be collected.