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Talbot Industries manufactures two models of wireless headset: TI-12 and TI-28. Each product requires time on a single machine. The machine has a monthly capacity
Talbot Industries manufactures two models of wireless headset: TI-12 and TI-28. Each product requires time on a single machine. The machine has a monthly capacity of 624 hours. Total market demand for the two products is limited to 2,140 units of TI-12 and 1,070 units of TI-28 monthly. Talbot is currently producing and selling 1,570 TI-12 models and 794 TI-28 models each month. Cost and machine-usage 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 TI-12s and TI-28s 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? Complete this question by entering your answers in the tabs below. What is the optimal production schedule for Talbot Industries? In other words, how many TI-12s and TI-28s should the company produce each month to maximize monthly profit? Complete this question by entering your answers in the tabs below. 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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