Kentwood Electronics manufactures three components for stereo systems: CD players, tape decks, and stereo tuners. The wholesale price and manufacturing cost of each item are shown in the following table.

Each CD player produced requires 3 hours of assembly; each tape deck requires 2 hours of assembly; and each tuner requires 1 hour of assembly. The marketing department has indicated that it can sell no more than 150,000 CD players, 100,000 tape decks, and 90,000 stereo tuners. However, the demand is expected to be at least 50,000 units of each item, and Kentwood wants to meet this demand. If Kentwood has 400,000 hours of assembly time available, how many CD players, tape decks, and stereo tuners should it produce to maximize profits while meeting the minimum demand figures?
a. Formulate an LP model for this problem.
b. Create a spreadsheet model for this problem and solve it using Solver.
c. What is the optimalsolution?

Transcribed Image Text:

Wholesale Manufacturing Price $150 $85 Cost $75 $35 $70 30 Component CD Player Tape Deck Stereo Tuner