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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 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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