Assignment:
Ed Butler is the production manager for the Bilco Corporation, which produces three types of spare parts for automobiles. The manufacture of each part requires processing on each of two machines, with the following processing times (in hours):
|
Part
|
|
Machine
|
A
|
B
|
C
|
|
1
|
0.02
|
0.03
|
0.05
|
|
2
|
0.05
|
0.02
|
0.04
|
Each machine is available 40 hours per month. Each part manufactured will yield a unit profit as follows:
|
Part
|
|
A
|
B
|
C
|
|
Profit
|
$50
|
$40
|
$30
|
Ed wants to determine the mix of spare parts to produce to maximize total profit. What is the minimum increase in profits for Parts C to entice Ed to produce Part C?
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.