PC Tech must decide how many of each of its computer models to produce. Each computer must be assembled, tested, and packaged. There are now two lines for testing. Any computer can be tested on either line.

The labor availability and maximum sales for each computer model are provided below.

How many of each computer model should the company test on each line to maximize total profit?

What is the maximum total profit? Format: $1,000

Which constraint is binding?

	A.	Labor availability for assembling
	B.	Labor availability for testing, line 1
	C.	Labor availability for testing, line 2
	D.	Labor availability for packaging
	E.	Maximum sales

How much is the slack in the constraint of labor availability for assembling? Format: 1,000

Background: PC Tech must decide how many of each of its computer models to produce. Each computer must be assembled, tested, and packaged. There are now two lines for testing. Any computer can be tested on either line. The labor availability and maximum sales for each computer model are provided below. How many of each computer model should the company test on each line to maximize total profit? Cost per labor hour assembling Cost per labor hour testing, line 1 Cost per labor hour testing, line 2 Cost per labor hour packaging Resource needed per computer Labor hours for assembly Labor hours for testing, line 1 Labor hours for testing, line 2 Labor hours for packaging Cost of component parts Selling price per computer Cost and unit margin per computer Total cost of labor on line 1 Total cost of labor on line 2 Unit margin, tested on line 1 Unit margin, tested on line 2 Testing plan (# of computers) Number tested on line 1 Number tested on line 2 Total computers produced Maximum sales Constraints Labor for assembling Labor for testing, line 1 Labor for testing, line 2 Labor for packaging Total profit Tested on line 1 Tested on line 2 $11 $19 $17 $12 Model 1 4 1.5 2 0.1 $150 $350 Model 1 Model 1 1500 Total hours used Model 1 Model 2 5 2 2.5 0.1 $225 $450 Model 2 Model 2 Model 3 1250 < Model 3 5 2 2.5 0.1 $225 < < $460 Model 3 1250 Total hours available 20000 5000 6000 300 Model 2 Model 3 Model 4 5 2 2.5 0.1 $225 $470 Model 4 Model 4 1250 Model 4 Model 5 5.5 2.5 3 0.1 $250 $500 Model 5 Model 5 1000 Model 5 Model 6 5.5 2.5 3 0.1 $250 $525 Model 6 Model 6 1000 Model 6 Model 7 5.5 2.5 3.5 0.1 $250 $530 Model 7 Model 7 1000 Model 7 Model 8 6 3 3.5 0.1 $300 $600 Model 8 800 Model 9 6.5 3.5 3.5 0.1 $350 Model 8 $670 Model 8 Model 9 Model 10 Model 9 600 Model 10 7 4 3.5 0.1 $400 Model 9 $740 Model 10 400 Model 10 $ Totals