A small desktop computer producer has three models, Basic, XP and VXP. The producer simply buys the components, assembles them and finally tests them. You are given the selling price, and variable costs (component and labor) for the products. Using these, the contribution margin associated with each product is also calculated. Assembly hours and testing hours are the two limited resources. In addition, the sales and production planning departments have agreed upon an upper limit on the production quantity of each model, based on the demand, the inventory holding costs and other factors.

1. Complete the missing parts of the model and solve it to optimality using Solver.
2. In the optimal solution two of the decision variables take fractional values. If we round them to the nearest integer, do we get a feasible solution?

142 fx C D E F G H J K L Part b) B 1 Assembling and testing computers 2 3 Cost per labor hour assembling $11 4 Cost per labor hour testing $15 5 6 Inputs for assembling and testing a computer 7 Basic 8 Labor hours for assembly 5 9 Labor hours for testing 1 10 Cost of component parts $150 11 Selling price $300 12 Unit margin $80 13 14 Assembling, testing plan (# of computers) 15 Basic 16 Number to produce XP 6 2 $225 $450 $129 VXP 8 3 $275 $560 $152 XP VXP 17 600 1200 50 Hours used 18 Maximum sales 19 20 Constraints (hours per month) 21 Labor availability for assembling 22 Labor availability for testing 23 24 25 Net profit ($ this month) 26 Hours available 10000 3000 Total Basic $0 XP $0 VXP $0 27 28 29