Answered: Duluth Electronics makes two types of…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Duluth Electronics makes two types of scooters: Falcon and Hawk. The Falcon model has a lighter engine and a smaller frame to make novice riders easier to balance. The Hawk is a little bigger and uses a heavier engine. Falcon requires 6 hours of manufacturing time and Hawk takes only 3 hours. Duluth's main plant in Kentucky has 2,100 hours of engine manufacturing time available. Duluth's vendors have the ability to supply as many Falcon frames as needed, but they only provide 280 Hawk frames. Falcon requires 2 hours of testing and 2.5 hours for Hawk. There are only 1,000 hours available for testing.

The finance department estimates that the Falcon model contributes a profit of $2,400 and the Hawk $1,800.

Determine the optimal solution for this problem.
Recommend what you think is a good strategy for Duluth, given your computations.
Type your final answers in the space provided and show your graph in the solutions file (no need for hand-drawn graphs, but the feasible region should be shaded).

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