Cusco Manufacturing makes various bronze objects for sale to tourists that ...
Cusco Manufacturing makes various bronze objects for sale to tourists that come to Cusco and Machu Picchu. Each bronze llama sold brings a profit of $41 U.S., each bronze turtle brings $29, and each bronze conquistador head brings $47. Cusco Manufacturing has 30 artisan employees, each of whom works 8 hours a day, six days a week. The bronze objects are individually made by the artisans. Each llama takes 3 hours of labor, each turtle takes 4 hours of labor and each conquistador's head takes 6 hours of labor. Each llama takes 20 ozs of bronze, each turtle takes 14 ozs. Of bronze, and each conquistador's head takes 19 ozs of bronze. Peru has placed a quota on use of bronze, and by the quota Cusco can access a maximum of 15,000 ozs per week. A. how many of each of these three items should Cusco manufacture each week in order to maximize its profits? B. What will be the maximum profit? C. What is the shadow price for labor?
7 years ago
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