Simon manufacturing makes three products. The profit contributions per unit are $150 for Product 1, $156 for Product 2, and $160 for Product 3. Each product requires manufacturing operations in three workstations (WS). Each workstation has limited capacity available and the processing time requirements per unit are as follows. A production manager noted that setup costs need to be considered for the final decision. Setup costs are $800 for Product 1, $1,100 for Product 2, and $1,200 for Product 3. According to the recent demand forecast, the company should not produce more than 800 units of Product 1, 700 units of Product 2, and 500 units of Product 3.

Workstation Prod 1 Prod 2 Prod 3 Capacity Available W31 2 hr. 5 hr. 3 hr. 1.800 hr. WS 2 3 hr. 1 hr. 4 hr. 1.500 hr. WS 3 0.5 hr. 0.5 hr. 0.5 hr. 500 hr. Prot $150 $156 $160 Setup Cost $800 $1,100 $1.200