The following data is for a company that produces washers and dryers.
• Dryers retail for $198 and contribute $15 to profit.
• Washers retail for $499.95 and contribute $45 for profit.
• The washer blade is limited in production capacity to 50 blades, while all other
components have no limits.
• Chassis assembly requires 6 person-hours for each dryer set and 18 personhours
for each washer. The plant employs 225 workers for an 8-hour shift to
perform chassis assembly operations.
• A dryer requires 1 person-hour on the assembly line, a washer set
1.6 person-hours. There are 30 people on a single 8-hour shift assigned to
assembly.
• Final inspection requires 0.5 person-hour for a dryer and 2.0 person-hours for
washer. The plant employs 20 full-time inspectors and one part-time employee
for 2 hours per day.
a. Write a linear programming model.
b. What is the optimum number of dryers and washers?
c. Calculate the maximum profit.
d. The linear programming and break-even approaches are used to find the
selling price for both the dryer and washer, based on $10,000 fixed cost
for both dryer and washer with a variable cost of $160 for the dryer and
$330 for the washer. Determine how many days will be required until the
company starts making a profit for the washers and the dryers. Use $198
and $500 as selling prices for the dryer and the washer, respectively.