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Talbot Industries manufactures two models of wireless headset: TI - 1 2 and TI - 2 8 . Each product requires time on a single
Talbot Industries manufactures two models of wireless headset: TI and TI Each product requires time on a single machine. The
machine has a monthly capacity of hours. Total market demand for the two products is limited to units of TI and
units of TI monthly. Talbot is currently producing and selling TI models and models each month. Cost and
machineusage data for the two products are shown in the following spreadsheet, which analysts at Talbot use for production planning
purposes:
Required:
a What is the optimal production schedule for Talbot Industries? In other words, how many TIs and TIs should the company
produce each month to maximize monthly profit?
b If Talbot Industries produces at the level found in requirement a how much will monthly profit increase over the current production
schedule?
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What is the optimal production schedule for Talbot Industries? In other words, how many TIs and TIs should the
company produce each month to maximize monthly profit?
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