An electronics company is engaged in the production of two components C, and C2, used in radio sets.Each unit of C, costs the company 7 5 in wages and ? 5 in materials, while each unit of C2 costs thecompany 25 in wages and 15 in materials. The company sells both products on one-period creditterms, but the company's labour and material expenses must be paid in cash. The selling price of C, is* 30 per unit and of C, it is ? 70. Because of the strong monopoly of the company for these components, itis assumed that the company can sell at the prevailing prices as many units as it produces. The company'sproduction capacity is, however, limited by two considerations. First, at the beginning of period 1, thecompany has initial balance of 4,000 (cash plus bank credit plus collections from past credit sales).Secondly, the company has available, in each period, 2,000 hours of machine time and 1,400 hoursof assembly time. The production of each C requires three hours of machine time and two hours ofassembly time, whereas the production of each C, requires two hours of machine time and three hoursof assembly time.Formulate the above problem as a linear programming problem.

Name: An electronics company is engaged in the production of two components
Uploaded: 2024-03-20T07:07:26.000Z
Channel: Bartleby
Description: An electronics company is engaged in the production of two components C, and C2, used in radio sets.Each unit of C, costs the company 7 5 in wages and ? 5 in materials, while each unit of C2 costs thecompany 25 in wages and 15 in materials. The comp