An uninterruptible power system manufacturer is currently deciding between two processes for its new automated assembly system. All defect- free units can be sold at $210 each, and all rejected units can be sold at $11 for scrap. Other related information for each model is given below. $$\begin{array} { | l | l | l | }
\hline \text { Process } & \text { A } & \text { B } \
\hline \text { Output rate, units/hour } & 250 & 230 \
\hline \begin{array} { l }
\text { Daily available } \
\text { production time, hours }
\end{array} & 14 & 16 \
\hline \text { Material cost, } \$ / \text { unit } & 25 & 25 \
\hline \begin{array} { l }
\text { Variable operating cost, } \
\$ / \text { hour }
\end{array} & 45 & 49 \
\hline \begin{array} { l }
\text { Variable overhead cost, } \
\$ / \text { hour }
\end{array} & 40 & 39 \
\hline \text { Percent reject } & 40 & 38 \
\hline
\end{array}$$ Which process should be adopted to maximize profit per day?

Question

An uninterruptible power system manufacturer is currently deciding between two processes for its new automated assembly system. All defect- free units can be sold at $210 each, and all rejected units can be sold at $11 for scrap. Other related information for each model is given below. $$\begin{array} { | l | l | l | } 
\hline \text { Process } & \text { A } & \text { B } \
\hline \text { Output rate, units/hour } & 250 & 230 \
\hline \begin{array} { l } 
\text { Daily available } \
\text { production time, hours }
\end{array} & 14 & 16 \
\hline \text { Material cost, } \$ / \text { unit } & 25 & 25 \
\hline \begin{array} { l } 
\text { Variable operating cost, } \
\$ / \text { hour }
\end{array} & 45 & 49 \
\hline \begin{array} { l } 
\text { Variable overhead cost, } \
\$ / \text { hour }
\end{array} & 40 & 39 \
\hline \text { Percent reject } & 40 & 38 \
\hline
\end{array}$$ Which process should be adopted to maximize profit per day?

Quizplus · Accepted Answer

The Answer of An uninterruptible power system manufacturer is currently deciding between two processes for its new automated assembly system. All defect- free units can be sold at $210 each, and all rejected units can be sold at $11 for scrap. Other related information for each model is given below. $$\begin{array} { | l | l | l | } 
\hline \text { Process } & \text { A } & \text { B } \
\hline \text { Output rate, units/hour } & 250 & 230 \
\hline \begin{array} { l } 
\text { Daily available } \
\text { production time, hours }
\end{array} & 14 & 16 \
\hline \text { Material cost, } \$ / \text { unit } & 25 & 25 \
\hline \begin{array} { l } 
\text { Variable operating cost, } \
\$ / \text { hour }
\end{array} & 45 & 49 \
\hline \begin{array} { l } 
\text { Variable overhead cost, } \
\$ / \text { hour }
\end{array} & 40 & 39 \
\hline \text { Percent reject } & 40 & 38 \
\hline
\end{array}$$ Which process should be adopted to maximize profit per day?

An Uninterruptible Power System Manufacturer Is Currently Deciding Between Two