AVX corporation produces digital sound mixers. These are made using the following components- monitors, keyboards, amplifiers, speakers and cables. AVX has the option of producing these components in-house and/or purchasing them from an third party supplier. AVXs sales forecast indicates that the following quantities will be needed to satisfy demand during the upcoming quarter- 6900 monitors, 11650 amplifiers, 9900 speakers, 7350 keyboards and 21500 cables. If AVX manufactures a component in-house, it incurs a fixed setup cost as well as a variable manufacturing cost. Additionally, each component will require manufacturing and assembly time. AVX has a total of 10100 hours of manufacturing time and 8150 hours of assembly time available.

The following table shows the setup cost, the manufacturing time and assembly time per component, the variable cost per component, and the cost to purchase each of the components from an outside supplier:

Component	Setup Cost (fixed)	Variable Cost (per unit)	Purchase Cost (per unit)	Man time (per unit)	Assembly time (per unit)
Monitor	7800	46	38	0.25	0.26
Keyboard	6500	25	31	0.35	0.35
Amplifier	8650	70	76	0.32	0.35
Speaker	9600	55	63	0.5	0.4
Cables	3850	12	14	0.15	0.1

Formulate a mixed integer model

Hint: Since you have a setup cost you need a binary variable. Have a look at the Mixed Integer Modeling problems.