Rylon Corporation manufactures Brute cologne and Chanelle perfume. The raw material needed to manufacture each type of fragrance can be purchased for $60 per pound. Processing 1 pound of raw material...

Rylon Corporation manufactures Brute cologne and Chanelle perfume. The raw material needed to manufacture each type of fragrance can be purchased for $60 per pound. Processing 1 pound of raw material requires 1 hour of laboratory time. Each pound of processed raw material yields 3 ounces of Regular Brute cologne and 4 ounces of Regular Chanelle perfume. Regular Brute can be sold for $140 per ounce and Regular Chanelle for $120 per ounce. Rylon also has the option of further processing Regular Brute and Regular Chanelle to produce Luxury Brute, sold at $360 per ounce, and Luxury Chanelle, sold at $280 per ounce. Each ounce of Regular Brute processed further requires an additional 3 hours of laboratory time and a $40 processing cost and yields 1 ounce of Luxury Brute. Each ounce of Regular Chanelle processed further requires an additional 2 hours of laboratory time and a $40 processing cost and yields 1 ounce of Luxury Chanelle. Each year, Rylon has 6000 hours of laboratory time available and can purchase up to 4000 pounds of raw material.


a.     Determine how Rylon can maximize its profit. Assume that the cost of the laboratory hours is a fixed cost (so that it can be ignored for this problem).

b.    Suppose that 1 pound of raw material can be used to produce either 3 ounces of Brute or 4 ounces of Chanelle. How does your answer to part a change?

c.   Use SolverTable to determine how a change in the price of Luxury Chanelle changes the optimal profit.


d.   Use SolverTable to determine how simultaneous changes in lab time and raw material availability change the optimal profit.


e.   Use SolverTable to determine how a change in the lab time required to process Luxury Brute changes the optimal profit.