Computer Products produces two keyboards, Regular and Special. Regular keyboards have a unit contribution margin of $90, and Special keyboards have a unit contribution margin of $150. The demand for Regulars exceeds Computer Products production capacity, which is limited by available machine-hours and direct manufacturing labor-hours. The maximum demand for Special keyboards is 40 per month. Management desires a product mix that will maximize the contribution toward fixed costs and profits.

Direct manufacturing labor is limited to 1,600 hours a month and machine-hours are limited to 1,200 a month. The Regular keyboards require 20 hours of labor and 30 machine-hours. Special keyboards require 80 labor-hours and 40 machine-hours.

Required: Formulate an LP program and solve for the optimal mix of Regular keyboards and Special keyboards. Please explain how you arrived at the answer below.

lConstraints:

max demand for Special keyboards S 40

Direct Labor Hours 20R + 80S 1,600

Machine Hours 30R + 40S 1,200

Non-negativity conditions R 0

S 0

The answer (R,S) is: (20,15) = $4050