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Benco Limited produces two critical components. K and T. both of which are used in petroleum refinery. The components are made by passing each one

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Benco Limited produces two critical components. K and T. both of which are used in petroleum refinery. The components are made by passing each one through two fully-automatic computer-controlled machine lines - A and B - with respective maximum capacity of 13,600 hours and 15.360 hours. The following details are available: (i) Due to production constraints. the company has decided to produce only oneof the two components. K or T for next period, but not both. (ii) Market demand is limited to 59.200 units of K and 80,000 units of T. (iii) Products unit data: K T Selling price #900 #800 Machine time (hours) - line A 0.25 0.15 line B 0.20 0.225 Raw material X (kg) 2 2 (iv) The maximum quantity of material X available is 136,000kg. The material is purchased at #50 per kg. (v) Variable machine overhead for machine line A and line B is estimated at#500 and #600 per machine hour respectively. (vi) The company operates a JIT system

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