An electronics firm manufactures two types of personal
computers, a desktop model and a portable model. The production of
a desktop computer requires a capital expenditure of $400 and 40
hours of labor. The production of a portable computer requires a
capital expenditure of $250 and 30 hours of labor. The firm has
$20,000 capital and 2,160 labor-hours available for the production
of desktop and portable computers.
a. What is the maximum number of computers the company is
capable of producing?
b. If each desktop computer contributes a profit of $320 and
each portable computer contributes a profit of $220, how many of
each type of computer should the firm produce in order to maximize
profit? What is the maximum profit?