Question

The Toys-R-4-U Company has developed two new toys for possible inclusion in its product line for the upcoming Christmas season. Setting up the production facilities to begin production would cost \$50,000 for Toy 1 and \$90,000 for Toy 2. After start- up costs are covered, the toys would generate marginal revenue of \$10 for Toy 1 and \$20 for Toy 2. Toy 1 can be produced at the rate of 50 per hour and Toy 2 can be produced at the rate of 25 per hour. The factory has 700 hours of production time available before Christmas that could be used to produce these toys. It is not known whether these two toys would be continued after Christmas. Therefore, the problem is to determine how many units (if any) of each new toy should be produced before Christmas to maximize the total profit (total marginal revenue minus start-up costs). Formulate an MIP (Mixed Integer Programming) model for this problem. Then use Solver to find the optimal solution. In your solution, include a screen shot of your Excel worksheet showing row numbers and column letters, and a screen shot of the Solver Parameters window. In a sentence, explicitly identify how many of each toy should be made as well as the maximized profit.

          The Toys-R-4-U Company has developed two new toys for
possible inclusion in its product line for the upcoming Christmas
season. Setting up the production facilities to begin production
would cost \$50,000 for Toy 1 and \$90,000 for Toy 2. After start-
up costs are covered, the toys would generate marginal revenue of
\$10 for Toy 1 and \$20 for Toy 2.
Toy 1 can be produced at the rate of 50 per hour and Toy 2 can be
produced at the rate of 25 per hour. The factory has 700 hours of
production time available before Christmas that could be used to
produce these toys.
It is not known whether these two toys would be continued after
Christmas. Therefore, the problem is to determine how many
units (if any) of each new toy should be produced before
Christmas to maximize the total profit (total marginal revenue
minus start-up costs).
Formulate an MIP (Mixed Integer Programming) model for this
problem. Then use Solver to find the optimal solution. In your
solution, include a screen shot of your Excel worksheet showing
row numbers and column letters, and a screen shot of the Solver
Parameters window. In a sentence, explicitly identify how many
of each toy should be made as well as the maximized profit.

The Toys-R-4-U Company has developed two new toys for
possible inclusion in its product line for the upcoming Christmas
season. Setting up the production facilities to begin production
would cost $50,000 for Toy 1 and $90,000 for Toy 2. After start-
up costs are covered, the toys would generate marginal revenue of
$10 for Toy 1 and $20 for Toy 2.
Toy 1 can be produced at the rate of 50 per hour and Toy 2 can be
produced at the rate of 25 per hour. The factory has 700 hours of
production time available before Christmas that could be used to
produce these toys.
It is not known whether these two toys would be continued after
Christmas. Therefore, the problem is to determine how many
units (if any) of each new toy should be produced before
Christmas to maximize the total profit (total marginal revenue
minus start-up costs).
Formulate an MIP (Mixed Integer Programming) model for this
problem. Then use Solver to find the optimal solution. In your
solution, include a screen shot of your Excel worksheet showing
row numbers and column letters, and a screen shot of the Solver
Parameters window. In a sentence, explicitly identify how many
of each toy should be made as well as the maximized profit.

Added by Joshua K.

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