Ask Question, Ask an Expert


Ask Microeconomics Expert

Profit Maximization: Architect specializing in Residential, R, and commercial, C, designs. Prevailing prices are $10000 for R and $25000 for C. Six architects work 50 hrs/week, 50 weeks/year. Six drafting personnel and two secretaries work 40 hrs/week, 50 weeks/year. The firm expects 150 hrs of architect and 100 hrs of drafting time for each R design, and 250 architect hours and 200 drafting hours for C. Each also requires 50 hours secretarial time per design. In addition, variable processing costs are $1000 per R design adn $1500 per C design.

Set up linear programming to determine proft maximizing output levels for R and C designs. Show both inequality and equality forms of the constraint conditions. Completely solve and interpret the solution values for the linear programming problem. find out maximum possibe net profits per year for the firm assuming architects draw a salary of $100,000 per year, drafting personnel earn $65,000 per year, and secretaries are paid $20 per hour, and fixed overhead averages $50,000.

Finally, after considering all, one drafting personnel is reduced to part time (adjusting salary accordingly) while retaining the rest of the staff full time. What are the net profits under this suggestion?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M942829

Have any Question? 

Related Questions in Microeconomics

Q1 in quantity theory of money model mv py assume that v

Q1. In quantity theory of money model, MV = PY, assume that V is constant, M is growing at 6% per year, Y is growing at 3%. a. If r = 2, what is i? b. If the Fed reduces the money growth rate by 2% points per year, what ...

Assignmentone responsibility of an information assurance

Assignment One responsibility of an information assurance professional is to work with the organization's security team to explain risk assessment and report findings to executives. The report is likely to involve sensit ...

Assignment-money and pricesjaydeethe organizations

Assignment-Money and Prices Jaydee The organization's strategic plan you wrote about in Week 2 calls for an aggressive growth plan, requiring investment in facilities and equipment, growth in productivity, and labor over ...

Microeconomicswatch this 30 mins youtube link on how the

Microeconomics Watch this 30 mins. YouTube link on 'How The Economic Machine Works' You will enjoy it! Write down your understanding of 'How The Economic Machine Works' and make sure to suppo ...

Assignmentwhat are the most important knowledge assets at

Assignment What are the most important knowledge assets at Dirt Bikes? What functions and employee positions are responsible for creating, distributing, and using these knowledge assets? Are all of these assets explicit ...

Then answer the following questionsin the video it is

Then answer the following questions: In the video, it is mentioned that Whirlpool provides three different types of appliances that vary in the amount of features that are offered. Discuss the product differentiation acr ...

Assignmentwe often have difficulty understanding how our

Assignment We often have difficulty understanding how our own customs and traditions could be viewed any way other than as right. In that regard, cultural relativism (viewing a custom from the other culture's perspective ...

Assignmentvisit wwwlovemarkscom and share your thoughts on

Assignment Visit and share your thoughts on Branding and Pricing as it "The Future Beyond Brands." Check out the Love/Respect Axis and see just where your favorite brand is sitting. (lmnu ...

Can you write a great paper on a research economic topic10

Can you write a great paper on a Research economic topic 10 page paper Including abstract, introduction, content and conclusion, reference. You can choose any economic topics and analyze the issue from your own perspecti ...

Assignmentanalyze the significant rules concerning the

Assignment Analyze the significant rules concerning the manner in which corporations treat the dividends that they are paying. Based on your analysis, recommend at least two changes that you would make to the rules that ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro