Problem 8-19 Better Products, Inc., manufactures three products on two machines. In a typical week, 40 hours are available on each machine. The profit contribution and production time in hours per uni

1. Problem 8-19

Better Products, Inc., manufactures three products on two machines. In a typical week, 40 hours are available on each machine. The profit contribution and production time in hours per unit are as follows:

Two operators are required for machine 1; thus, 2 hours of labor must be scheduled for each hour of machine 1 time. Only one operator is required for machine 2. A maximum of 100 labor-hours is available for assignment to the machines during the coming week. Other production requirements are that product 1 cannot account for more than 50% of the units produced and that product 3 must account for at least 20% of the units produced.

1. 1. How many units of each product should be produced to maximize the total profit contribution?

      Product	# of units
      	fill in the blank 1
      	fill in the blank 2
      	fill in the blank 3

   2. 
      What is the projected weekly profit associated with your solution?
      $  fill in the blank 4

   3. How many hours of production time will be scheduled on each machine? If required, round your answers to two decimal places.
      Machine Hours Schedule: Machine 1: fill in the blank 5 Hours; Machine 2: fill in the blank 6 Hours

   4. What is the value of an additional hour of labor? If required, round your answers to two decimal places.
      $  fill in the blank 7

   5. Assume that labor capacity can be increased to 120 hours. Develop the optimal product mix, assuming that the extra hours are made available.

      Product	# of units
      	fill in the blank 8
      	fill in the blank 9
      	fill in the blank 10

   6. 
      Profit: $  fill in the blank 11
      Would you be interested in using the additional 20 hours available for this resource?
       

Yes or no