NEWGEN is a company specializing in manufacturing special purpose computer: A decision

must be made: How many computers should be produced next month at Konza Plant. The

two types of computers considered are: CC-1 which requires 300 days of labor and $ 10,000

in materials, and the CC-2 which requires 500 days of labor and $ 15,000 in materials. The

profit contribution of each CC-1 is $ 8,000 whereas that of each CC-2 is $ 12,000. The plant

has a capacity of 200,000 working days per month, and the material budget of kshs

8,000,000 per month. Marketing requires that at least 100 units of the CC-1 and at least

200 units of the CC-2 be produced each month. The problem is to maximize the company's

profits by determining how many units of the CC-1 and how many units of the CC-2 should

be produced each month.

Required:

a) Identify the decision variables and result variable for the NEWGEN Corporation problem (6

marks

b) Identify the objective for the above problem, and provide formula for it (2 marks)

c) Identify the constraints for the above problem and write the formula for each (2 marks)

d) Develop a model for the NEWGEN problem in MS Excel and solve it. (10 marks)