19. WELLTYPE Manufacturing Company produces three types of typewriters: Manual typewriters, Electronic typewriters, and Deluxe Electronic typewriters. All the three models are required to be machined first and then assembled. The times required for the various models are as follows:

The total available machine time and assembly time are 3,000 hours and 1,200 hours respectively. The data regarding the selling price and variable costs for the three types are:

The company sells all the three on credit basis, but will collect the amounts on the first of next month.
The labour, material and other variable expenses will have to be paid in cash. This company has a loan of Rs 40,000 from a co-operative bank and this company will have to repay it to the bank on 1st April, 1993. The TNC Bank from whom this company has borrowed Rs 60,000 has expressed its approval to renew the loan.
The Balance Sheet of this company as on 31.3.93 is as follows:

The company will have to pay a sum of Rs 10,000 towards the salary for top management executives and other fixed overheads for the month. Interest on long-term loans is to be paid every month at 24%
per annum. Interest on loans from TNC and Co-operative Banks may be taken to be Rs 1,200 for the month. Also, this company has promised to deliver 2 Manual typewriters and 8 Deluxe Electronic typewriters to one of its valued customers next month.
Also, make sure that the level of operations in this company is subject to the availability of cash next month. This company will also be able to sell all three types of typewriters in the market. The Senior Manager of this company desires to know as to how many units of each typewriter must be manufactured in the factory next month so as to maximise the profits of the company.
Formulate this as a linear programming problem. The formulated problem need not be solved.

Transcribed Image Text:

Type Manual typewriter Machine time (in hours) 15 324 Assembly time (in hours) 4 3 5 Electronic typewriter Deluxe Electronic typewriter 12 14