Question: Examples Q . The PC Tech company assembles & tests two models of computers, Basic & XP . For the coming month, the company wants

Examples
Q. The PC Tech company assembles & tests two models of computers, Basic & XP. For the coming month, the company wants to decide how many of each model to assemble & test. No computers are in inventory from the previous month, and the company doesn't want to hold any inventory after this month. It believes the most it can sell this month are 600 Basics and 1200 XPs. Each Basic sells for $300 & each XP sells for $450. The cost of component parts for a Basic is $150; for an XP it is $225. Labor is required for assembly & testing. There are at most 10,000 assembly hours & 3000 testing hours available. Each labor hour for assembling costs $11 & each labor hour for testing costs $15. A Basic requires five hours for assembling & one hour for testing, & an XP requires six hours for assembling & two hours for testing. PC Tech wants to know how many of each model it should produce (assemble & test) to maximize its net profit.
Give a detailed step wise and accurate solution
 Examples Q. The PC Tech company assembles & tests two models

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!