An electronic firm decides to launch two new models of


An electronic firm decides to launch two new models of computer COM 1 and COM 2. The cost of producing each machine of type 1 is $1,200 and the cost for COM 2 is $1,600. The firm recognises that it is a risky venture and decides to limit the total weekly production cost to $40,000. Also, due to a shortage of skilled labour, the total number of computers that the firm can produce in a week is at most 30. The profit made on each machine is $700 for COM 1 and $800 for COM 2.

How should the firm arrange production to maximize profit?

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Operation Management: An electronic firm decides to launch two new models of
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