A bicycle component manufacturer produces the hubs for bike wheels. There are two types of processes are possible for manufacturing, and parameters of each process are as follows
Process 1: daily production time is 4 hours/day, production rate is 35 parts/hour, and the percent of parts rejected based on visual inspection is 20%
Process 2: daily production time is 7 hours/day, production rate is 15 parts/hour, and percent of parts rejected based on visual inspection is 9%
Suppose that the daily demand for hubs allows all defect-free hubs to be sold. Additionally, tested or rejected hubs cannot be sold. Identify the process that maximizes profit per day if each part is made from $4 worth of material and can be sold for $30. Both processes are fully automated, and variable overhead cost is charged at the rate of $40 per hour