QUESTION2 (50 Marks)
Howard Mechanical Corporation manufactures two products. Eachproduct involves a certain amount of broaching, grinding andpolishing as detailed below:
For the coming month, the corporation has maximum availablecapacities of 600 hours for polishing, 800 hours for broaching and400 hours for grinding.
Product A is fabricated from 5 kg of aluminium; product Brequires 2 kg of brass. For the coming month, 100 kg of brass and350 kg of aluminium are available for use in the corporation.
If the same profit, $800, is derived from the sale of eachproduct,
(i) What is the optimum combinationof products for the coming month and what profit will bemade? (20 marks)
(ii) Two proposals have beensubmitted for your consideration. The first proposal recommends thepurchase of additional supplies of aluminium for the coming monthand the second proposal recommends that additional people should beemployed on a casual basis for polishing. Is either proposal worthfurther investigation? Justify your answer by indicating theincreased potential profit associated with each of the twoproposals. (30 marks)
Product A Broaching 8 hours Grinding 5 hours Polishing 10 hours 10 hours 4 hours 6 hours Show transcribed image text Product A Broaching 8 hours Grinding 5 hours Polishing 10 hours 10 hours 4 hours 6 hours
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