Tracksaws, Inc Formulation:
Let X = Number of Tractors Produced Per Period

question 81

Short Answer

Tracksaws, Inc. makes tractors and lawn mowers. The firm makes a profit of $30 on each tractor and $30 on each lawn mower, and they sell all they can produce. The time requirements in the machine shop, fabrication, and tractor assembly are given in the table.
$$\begin{array} { l l l l } & \text { Machine Shop } & \text { Fabrication } & \text { Assembly } \\\hline \text { Tractor } & 2 \text { hours } & 2 \text { hours } & 1 \text { hour } \\\text { Lawn Mower } & 1 \text { hour } & 3 \text { hours } & 0 \text { hour } \\\text { Hrs. Available } & 60 \text { hours } & 120 \text { hours } & 45 \text { hours } \\\hline\end{array}$$ Formulation:
Let x = number of tractors produced per period
y = number of lawn mowers produced per period
Let x = number of tractors produced per period
y = number of lawn mowers produced per period
MAX 30x + 30y
subject to  2x + y ? 60
    2x + 3y ? 120
    x ? 45



The graphical solution is shown below.

-What is the shadow price for assembly?

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Definitions:

Comparable Companies

A valuation method that involves comparing a company's financial metrics to those of similar companies in the same industry.

Operating Strategies

Plans and actions implemented by a business to support its operational objectives and to enhance competitive advantage.

Property, Plant, And Equipment

Tangible long-term assets used in the operation of a business, such as buildings and machinery, not intended for resale.

Component Percentages

Financial analysis technique that represents each financial statement item as a percentage of a base figure for easier comparison.