JB Electronics

JB Electronics manufactures three components used to produce cell phones and other communication devices. In a given production period, demand for the three components may exceed JB's manufacturing capacity. In this case, the company meets demand by purchasing the components from another manufacturer at an increased cost per unit. JB's manufacturing cost per unit and purchasing cost per unit for the three components are as follows:

Source	Component 1	Component 2	Component 3
Manufacture	$ 4.25	$ 4.85	$ 3.95
Purchase	$ 6.50	$ 7.80	$ 6.25

The components that JB manufactures require time in their production, assembly and testing departments. The time required for each component and production department are shown in the table below. For instance, each unit of Component 1 that JB manufactures requires 2.50 minutes of production time, 1.25 minutes of assembly time, and 1 minute of testing time. For the next production period, JB has capacities of 300 hours in the production department, 240 hours in the assembly department, and 200 hours in the testing. JB must satisfy demand of 5000, 4500 and 3500 units for components 1, 2 and 3, respectively, while minimizing total manufacturing and purchasing costs.

Department	Component 1	Component 2	Component 3
Production	2.50	2.25	3.75
Assembly	1.25	1.25	3.25
Testing	1.00	1.50	2.00

1. In the JB electronics problem, how much would the company save if they could increase time in their production line to 20,000

2. In the JB electronics problem, according to the optimal solution, what is the total cost of manufacturing components?