Realizing the optimal profit


RECYCLING

Response to the following problem:

Alpine Attic is the charity sponsored by local Episcopal churches in Denver, Colorado. Literally thousands of items, including televisions and stereos, are donated each year, most in need of repair. When Alpine Attic receives either a television or a stereo, it determines whether it can be sold "as is" or should be scrapped for parts. Those not sold "as is" are sent directly to JKL Electronics, whose owner, John K.

Lucas, is a deacon at $t. Paul's Episcopal Church. In addition to his primary business, each month John donates 45 hours of an electrician's time and 30 hours of a technician's time to rebuild and test televisions and stereos for Alpine Attic. In addition to a tax write-off, he feels rewarded by helping out his church. The recycled televisions and stereos typically sell for $50 and $30 each at the Alpine Attic Thrift Store. Each recycled television averages 90 minutes of an electrician's time to rebuild and 30 minutes of a technician's time to test, whereas each stereo averages 30 minutes of an electrician's time to rebuild and 60 minutes of a technician's time to test.

What is the best use of the electrician's and technician's time to help Alpine Attic realize its optimal profit each month?

 

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Cost Accounting: Realizing the optimal profit
Reference No:- TGS02119158

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