The Byte Computer Company Produces Two Models of Computers, Plain

question 25

Essay

The Byte computer company produces two models of computers, Plain and Fancy. It wants to plan how many computers to produce next month to maximize profits. Producing these computers requires wiring, assembly and inspection time. Each computer produces a certain level of profits but faces a limited demand. There are a limited number of wiring, assembly and inspection hours available next month. The data for this problem is summarized in the following table.
$\begin{array} { l c c c c c } &&\text { Maximum } &&\text { Assembly }&\text { Inspection } \\\text { Computer } &\text { Profit per }&\text { demand for }&\text { Wiring Hours } &\text { Hours } &\text { Hours } \\\text { Model }&\text { Model (\$)}&\text { product }&\text { Required }&\text { Required }&\text { Required }\\\hline \text { Plain } & 30 & 80 & .4 & .5 & .2 \\\text { Fancy } & 40 & 90 & .5 & .4 & .3 \\\hline & & \text { Hours Available } & 50 & 50 & 22\end{array}$

a.
Formulate the LP model for this problem.
b.
Solve the problem using the graphical method.

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Definitions:

Price Ceilings

A maximum price legally allowed for a product or service to safeguard the interests of consumers.

Pharmaceutical Industry

Refers to the sector of the economy that discovers, develops, produces, and markets drugs or pharmaceutical drugs for use as medications to be administered to patients, with the aim to cure them, vaccinate them, or alleviate symptoms.

Drug Manufacturers

Companies engaged in the production, marketing, and distribution of medications for health conditions.

Demand Price

The maximum price at which consumers are willing to buy a specific quantity of a good or service.