National Business Machines Manufactures Two Models of Fax Machines: a and B

question 164

Essay

National Business Machines manufactures two models of fax machines: A and B. Each model A costs $58 to make, and each model B costs $150. The profits are $37 for each model A and $60 for each model B fax machine. The total number of fax machines demanded per month does not exceed 2,700 and the company has earmarked no more than $740,000/month for manufacturing costs.
How many units of each model should National make each month in order to maximize its monthly profits? __________ __________
What is the optimal profit? $ __________

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Definitions:

Work Sharing

A program that allows employees to reduce working hours during economic downturns as an alternative to layoffs, with the aim of spreading a reduced amount of work over the same or a larger number of employees.

Hiring Freeze

A policy implemented by organizations to temporarily halt the recruitment of new employees.

Human Resource Planning

The strategic process employed by organizations to ensure the right number of people with the right skills are available to meet current and future business needs.

Performance Evaluation

The systematic process of assessing and documenting an employee's work performance and providing feedback.