Clapper Electronics produces two models of telephone-answering devices, model 102 (X1) and model H23 (X12) Jim Clapper, vice president for production, formulates their constraints as follows:

2X1 + 1X2 ≤ 40 (hours of time available on soldering machine)

1X1 + 3X2 ≤ 30 (hours of time available in inspection department)

Clapper’s objective function is Maximize profit = $9X1 + $7X2

Solving the problem using the simplex method, he produces the following final tableau:

(a) What is the optimal mix of models 102 and H23 to produce?
(b) What do variables and represent?
(c) Clapper is considering renting a second soldering machine at a cost to the firm of $2.50 per hour. Should he do so?
(d) Clapper computes that he can hire a part-time inspector for only $1.75 per hour. Should he doso?

Transcribed Image Text:

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