Exam 80

The unit wholesale price and manufacturing cost for each model are as follows.  Per Unit Revenues and Costs  HyperLink FastLink SpeedLink MicroLink Ethe Wholesale Price $189 $149 $129 $169 $1 Manufacturing Cost $136 $101 $96 $137 $1 In its next production period, Valu-Com has 80,000 square inches of PC board, 100,000 resistors, 30,000 memory chips, and 5,000 hours of assembly time available. The company can sell all the product it can manufacture, but the marketing department wants to be sure the company produces at least 500 units of each product and at least twice as many FastLink cards as HyperLink cards while maximizing profit. a. Formulate an LP model for this problem. b. Create a spreadsheet model for this problem, and solve it using Solver. c. What is the optimal solution? d. Could Valu-Com make more money if it schedules assembly workers to work overtime? Answer : Company VCE manufactures five models of interface cards using resistors, circuit boards, memory chips and assembly. The wholesale price and manufacturing cost of each of the model is shown below: a.