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A machine shop assembles transuniversals for sale to the local automobile plant. Because of high demands all units assembled can be sold for $188/unit. Three
A machine shop assembles transuniversals for sale to the local automobile plant. Because of high demands all units assembled can be sold for $188/unit. Three major components, C1, C2, and C3 are required in the assembly of each transuniversal. and the hop can either purchase these components from outside sources or manufacture the components themselves. In the internal manufacture of the components, and also in the final assembly of the transuniversals, labor and machine lime on Iwo machines M1 and M2, are required. The requirements follow. The shop has available each week 800 man-hours of labor at $4/hr and 200 man-hours of overtime at $6/hr, and 80 hr of machine time for M1 and 100 hr for M2. The costs per unit of the components, if purchased externally or produced internally (internal costs exclude labor costs), are as follows. Determine a production schedule that maximizes net income
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