Tapachki Sons produce handmade clogs in Lancashire They pro

Tapachki & Sons produce handmade clogs in Lancashire. They produce two types of clog, the Nelson and the Oldham. The profits per pair are L10 and L12 respectively. The company employs 2 leather-cutters, 4 sole-makers, and 3 stitchers. Each work a 40-hour week. The amount of labour time in hours required for a pair of each type of clog is:

Work out the optimal weekly production mix for the company to make the highest level of profit possible and state the maximum weekly profit they can expect.

Solution

Tapachki & Sons produce handmade clogs in Lancashire. They produce two types of clog, the Nelson and the Oldham. The profits per pair are L10 and L12 respectively. The company employs 2 leather-cutters, 4 sole-makers, and 3 stitchers. Each work a 40-hour week. The amount of labour time in hours required for a pair of each type of clog is:

Factor

Nelson

Oltham

Leather cutting

0.40

0.25

Sole Making

1.00

0.80

Stitching

.80

0.50

Total

3.00

2.35

Per pair cost of Nelson L3 & Profit per pair is L10

Actual Profit =:L10-L3= L7

Weekly Profit=L7X 7Days=L49

Per pair cost of Oltham is=L2.35 & Profit per pair is L12

actual Profit L12-L2.35=L8.25

Weekly Profit =L8.25X L7=L 57.75