An Insurance Company is introducing two new product lines: special risk insurance and mortgages. The expected profit is $5 per unit on special risk insurance and $2 per unit on mortgages. Management wishes to establish sales quotas for the new product lines to maximize total expected profit. The work requirements are as follows:  - Should the company consider acquiring an additional 500 hours for the Underwriting department at a cost of $2 per hour, and why?  - Based on the sensitivity report, can you determine the increase or decrease in profit if 100 work hours were transferred from Administration to Underwriting? If not, how you would be able to find the profit change in such a scenario.

The Mach 10 is a one-person sailboat manufactured by Creative Leisure. The final assembly plant is in Cupertino, California. The assembly area is available for production of the Mach 10 for 200 minutes per day. (The rest of the time it is busy making other products.) The daily demand is 56 boats. Given the following information: Task A B C D EFGH - Performance Time (mins) 1 2 2 1 2 1 1 2 2 Predecessors A A C D, E, F B G, H a) The correct precedence relationship with one of the possible assignment of tasks to workstations is shown in Fig. 2 b) The operating efficiency of the assembly line with 5 workstations shown in the figure chosen above = % (enter your response as a percentage rounded to one decimal place). Fig. 1 Fig. 2 Fig. 3 B B B H D F F Q G Q

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