A certain company produces tea trays and ash trays out of sheet metal. Following data is given on capacity availability and economics of each product:
|
Department
|
Time taken for
|
Available
time
|
|
|
Ash
tray
|
Tea
tray
|
|
Stamping
|
10 sec
|
20 sec
|
30,000 sec
|
|
Forming
|
15 sec
|
5 sec
|
30,000 sec
|
Determine the optimum production schedule. Each ash tray contributes Rs. 20 to the gross profit and each tea tray contributes Rs. 30 to the gross profit. Total daily fixed costs amount to Rs. 45,000. Solve this problem graphically. What is the maximum net profit per day at the optimum production level, including the effect of fixed cost?