Computer Production

COMPUTER PRODUCTION
MVC Enterprises can manufacture four different computer models; the Student, Plus, Net, and Pro models. The following gives the configurations of each model: | STUDENT | PLUS | NET | PRO | Processor | Celeron | Celeron | Celeron | Pentium | Hard Drive | 20 gb | 20 gb | 20 gb | 30 gb | Floppy Drives | 1 | 1 | 2 | 1 | Zip Drives | Yes | Yes | No | Yes | Audio/Video | CD R/W | DVD | DVD +CD R/W | DVD +CD R/W | Monitor | 15” | 15” | 17” | 17” | Case | Tower | Mini-Tower | Mini-Tower | Tower | ProductionTime (hrs.) | .4 | .5 | .6 | .8 | Unit Profit | $70 | $80 | $130 | $150 |
MVC must satisfy a contract that produces a minimum of 100 Net models per week
MVC employs 25 workers, each of whom averages 30 production hours each per week
The following resources are available weekly: Processors | Hard Drives | Other Drives | Celeron -700 | 20 gb –800 | Floppy –1600 | Pentium -550 | 30 gb –950 | Zip –1000 |

Audiovisual | Monitors | Cases | CD / R/W –1600 | 15” –850 | Mini –Tower – 1250 | DVD –900 | 17” –800 | Tower -750 |
a. Determine the optimal weekly production schedule for MVC. What is the optimal weekly profit?
b. What is the minimum price that would justify producing the Plus model? Explain.
c. If MVC could purchase additional 17” monitors for $15 more than what they are currently paying for them, should they do this? Explain.
d. Suppose an additional worker could be hired for $1000 per week over the existing weekly worker salary. (Recall that workers average 30 hours per week.) Should MVC do this? Explain.
Develop a 2-3 page business Memorandum to detail your answers and recommendations.