Soundex Produces Two Models of Clock Radios

question 150

Multiple Choice

Soundex produces two models of clock radios. Model A requires 15 min of work on assembly line I and 10 min of work on assembly line II. Model B requires 12 min of work on assembly line I and 20 min of work on assembly line II. At most 21 hr of assembly time on line I and 22 hr of assembly time on line II are available each day. Soundex anticipates a profit of $12 on model A and $10 on model B. Because of previous overproduction, management decides to limit the production of model A clock radios to no more than 90/day. The range of values that the contribution to the profit of a model A clock radio can assume without changing the optimal solution is . If the contribution to the profit of a model A clock radio is changed to $6.50/radio, will the original optimal solution still hold? What will be the optimal profit? ​

• A) No; optimal profit is $822
• B) Yes; optimal profit is $738
• C) No; optimal profit is $738
• D) Yes; optimal profit is $822

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