.KNUTH Machine Tools is a worldwide leading supplier of machine tools and accessories.They are providing drill machines to customers all over the world.The company recently received a $980,000 order for various quantities of three types of Drill machines.Each Drill machine requires a certain amount of time for Packing and Delivering. The following data summarizes the requirements for the three types of drill machine. Type1 Type 2 Type 3 Numbers Ordered 7,000 5,000 500 Hours of Packing Required per Unit 3 1 2 Hours of Delivering Required per Unit 2 1 2 Unfortunately,.KNUTH does not have enough for packing and delivering capacity to fulfill the order by its due date. The company has only 7,000 hours of packing capacity and 2,000 hours of delivering capacity available to devote to this order. However, the company can subcontract any portion of this order to one of its competitors. The unit costs of producing each type of drill machine in-house and buying the finished products from a competitor are summarized below. Type 1 Type 2 Type 3 Cost to Make $40 $70 $110 Cost to Buy $50 $86 $133 KNUTH wants to determine the number of drill machines to make and the number to buy to fulfill the customer order at the least possible cost.

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