Problem $4-75($Algo$)$ Optimum Product Mix $($LO $4-4)$

Talbot Industries manufactures two models of wireless headset: TI$-12$ and TI$-28.$ Each product requires time on a single machine. The

machine has a monthly capacity of $684$ hours. Total market demand for the two products is limited to $2,360$ units of TI$-12$ and $1,180$

units of TI$-28$ monthly. Talbot is currently producing and selling $1,680$ TI$-12$ models and $816TI-28$ models each month. Cost and

machine$-$usage data for the two products are shown in the following spreadsheet, which analysts at Talbot use for production planning

purposes:

Required:

a$.$ What is the optimal production schedule for Talbot Industries? In other words, how many TI$-12$s and TI$-28$s should the company

produce each month to maximize monthly profit?

b$.$ If Talbot Industries produces at the level found in requirement $($a$),$ how much will monthly profit increase over the current production

schedule?