Question

Problem 4-17 (Algorithmic) Frandec Company manufactures, assembles, and rebuilds material handling equipment used in warehouses and distribution centers. One product, called a Liftmaster, is assembled from four components: a frame, a motor two supports, and a metal strap. Frandec's production schedule calls for 5000 Liftmasters to be made next month. Frandec purchases the motors from an outside supplier, but the frames, supports, and straps may be either manufactured by the company or purchased from an outside supplier. Manufacturing and purchase costs per unit are shown Component Frame Support Strap Manufacturing Cost $31.00 $8.50 $5.50 Purchase Cost $44.00 $12.00 $6.50 Three departments are involved in the production of these components. The time (in minutes per unit) required to process each component in each department and the available capacity (in hours) for the three departments are as follows Component Frame Support Strap Capacity (hours) Cutting 2.8 1.1 0.7 330 Department Milling 1.8 1.4 Shaping 2.4 1.9 390 640

Answer 1