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  • No of Cars 387.5 No of Trucks 31.25

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    Pranshu Srivastava
    10 views6 pages
    1. The document analyzes the costs and profits of manufacturing cars and trucks. It calculates the optimal number of each to produce given labor hour constraints to maximize total profit. 2. The analysis finds producing 388 cars and 31 trucks maximizes profit given a 19,000 hour labor budget. Producing 200 of each within labor constraints yields a total car profit of $700,000 and total truck profit of $1,000,000. 3. Key costs considered include direct manufacturing costs per unit, hours needed for fabrication and assembly per unit, sales price per unit, and labor hour constraints for the fabrication and assembly departments.

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    solver

    Original Title

    Pranshu

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    1. The document analyzes the costs and profits of manufacturing cars and trucks. It calculates the optimal number of each to produce given labor hour constraints to maximize total profit. 2. The analysis finds producing 388 cars and 31 trucks maximizes profit given a 19,000 hour labor budget. Producing 200 of each within labor constraints yields a total car profit of $700,000 and total truck profit of $1,000,000. 3. Key costs considered include direct manufacturing costs per unit, hours needed for fabrication and assembly per unit, sales price per unit, and labor hour constraints for the fabrication and assembly departments.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    10 views6 pages

    No of Cars 387.5 No of Trucks 31.25

    Uploaded by

    Pranshu Srivastava
    1. The document analyzes the costs and profits of manufacturing cars and trucks. It calculates the optimal number of each to produce given labor hour constraints to maximize total profit. 2. The analysis finds producing 388 cars and 31 trucks maximizes profit given a 19,000 hour labor budget. Producing 200 of each within labor constraints yields a total car profit of $700,000 and total truck profit of $1,000,000. 3. Key costs considered include direct manufacturing costs per unit, hours needed for fabrication and assembly per unit, sales price per unit, and labor hour constraints for the fabrication and assembly departments.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 6

    Costs Car Truck

    fabrication engine assembly. fabrication engine assembly.


    20 hrs 25 hrs 40 hrs 10 hrs

    Cost of 1 car Direct 800


    Fab hours 20

    Assembly hours 25

    Fab
    No of cars 387.5 20
    No of trucks 31.25 40

    Solver analysis gives


    optimum number of cars =
    388 and trucks = 31 when
    target is set to 19000 9000
    Total hours with 200 cars and
    trucks

    Cost per unit Costs


    No of cars 200 800 fab 10000
    No of trucks 200 1000 Assembly 12000

    SP of car 4300
    SP of truck 6000

    Fab
    Constraint 4000 8000 12000
    Assembly 5000 2000 1000
    Assembaly = 10000 hrs
    Fab <= 12000

    Assembly Limit
    25 12000
    10 10000

    10000
    19000

    Total cost of car Total cost of truck


    160000 200000

    Total SP of Car Total SP of truck


    860000 1200000
    Min hours
    14000 200 9000
    22000 200 10000

    Total Profit of car 700,000.00


    Total profit of trucks 1,000,000.00
    1 Here as per the cost analysis, the company would be profitable with 200 cars and 200 trucks
    The conversion of worker hours to cost is something not able to figure out, and the only cost mentioned here is the
    t mentioned here is the direct manufacturing cost of car and truck, as well as the fixef cost of fabrication and assembky dept
    d assembky dept

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