Question: BigTech is a company that assembles and tests two models of computers: Basic and Pro. For the coming month, the company wants to decide how

BigTech is a company that assembles and tests two

BigTech is a company that assembles and tests two models of computers: Basic and Pro. For the coming month, the company wants to decide how many of each model to assemble and test. There are no unsold computers in inventory and no computers are held in inventory from one month to the next. The company believes it can sell 600 Basic model computers and 1,200 Pro model computers. Each Basic model can sell for $300 and each Pro model can sell for $450. The cost of parts is $150 for a Basic model and $225 for a Pro model. Labor is required to assembling and testing each machine. Based on the company's current capacity, there are 10,000 assembly hours and 3,000 testing hours available each month. Each labor hour of assembling costs $11 and each labor hour of testing costs $15. Each Basic model requires 5 assembling hours and 2 testing hours. Each Pro model needs 6 assembling hours and 2 testing hours. A. Formulate and solve a linear programming model to find the number of each computer model the company should produce in order to maximize profit. Basic Model 600 5 Inputs for assembling and testing a computer Estimated sales Labor hours for assembly Labor hours for testing Cost of component parts Selling price Pro Model 1,200 6 2 225 450 $ $ 2 150 $ 300 S Assembling and testing computers Cost per labor hour assembling Cost per labor hour testing $ $ 11 15 Available labor hours for assembling Available labor hours for testing 10,000 3,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!