Discounts Corporation is a producer of power engines. The biggest sellers they have are the Holiday and the Special. The Holiday sells for $50 and requires eighty ounces of material and thirty minutes of labor. The Special sells for $75 and requires 90 ounces of material 45 minutes of labor.

The company pays $0.50 an ounce for material and $0.10 a minute for labor. Discounts will not be able to get more than 25000 ounces of material and no more than 11500 minutes of labor.

1) Construct a spreadsheet model assuming 100 Holiday and 200 Special will be produced. Use the following order on your sheet:
Profit, Material used, labor used, revenue, unit selling price, quantity made, and material per unit, minutes per unit, cost of material used, cost of labor used, cost per lb, cost per minute.

2) Find the optimal solution using the model and What's Best.
3) Construct a graph.. Set-up and solve the problem graphically. When the graph is printed, please label which line is material and which is labor and shade the feasible region.
4)
A bicycle shop pays $6000 a month for mortgage payments. Property taxes are $1000 a month. Monthly fire insurance cost $2000 and lease payment on the machinery is $2000. They pay $5000 for depreciation on the truck and other depreciable equipment. Repair and maintenance cost are $4000 per month. Materials for a bike have an average cost of $100 and the company sells the bikes or an average cost of $200. If they sell 125 bikes, please answer the following questions:

What are the variable costs for the month?
What are the fixed costs?
What is the revenue?
What is the profit or loss on the bikes?
What is a fixed cost?
What is a variable cost?
How many bikes will need to be sold in order to breakeven?
Draw a breakeven graph using Microsoft Excel?