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1. Production Problem A sudden increase in the demand for smoke detectors has left Acme Alarms with insufficient capacity to meet demand. The company has seen monthly demand for its electronic and battery- operated detectors rise to 20,000 and 10,000, respectively, and Acme wishes to continue meeting demand. Acme's production process involves three departments: fabrication, assembly, and shipping. The relevant quantitative data on production and prices are summarized below. Department Hours/unit (Battery) Fabrication Assembly Shipping Monthly Hours Available 2000 4200 2500 Hours / Unit (Electronic) 0.15 0.20 0.10 0.10 0.20 0.15 Cost / unit Retail Price $ 18.80 $ 29.50 $ 16.00 $ 28.00 The company also has the option to obtain additional units from a subcontractor, who has offered to supply up to 20,000 units per month in any combination of electronic and battery-operated models, at a charge of $21.50 per unit. For this price, the subcontractor will test and ship its models directly to the retailers without using Acme's production process. (This is a planning model, and fractional decisions are acceptable.)