The Omega Manufacturing Company has discontinued
the production of a certain unprofitable product line. This act cre-
ated considerable excess production capacity. Management is con-
sidering devoting this excess capacity to one or more of three prod-
ucts; call them products 1, 2, and 3. The available capacity on the
machines that might limit output is summarized in the following
table:
Available Time
(Machine Hours per week)
Machine Type
500
350
Milling machine
Lathe
Grinder
150
The number of machine hours required for each unit of the re-
spective products is
Productivity coefficient in machine hours per unit)
Machine Type
Product 1 Product 2 Product 3
Milling machine
Lathe
Grinder
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