Business Analysis and Decision Makingthis is a limited time exam time is 2 hours for 4 questiongSECTION 1 (compulsory)Question 1Digital Controls, Inc. (DCI), manufactures two models of a radar gun used by police to monitor thespeed of automobiles. Model A is more accurate than model B. For the next week, the companyhas orders for 100 units of model A and 150 units of model B. Although DCI purchases all theelectronic components used in both models, the plastic cases for both models are manufacturedat a DCI plant in Newark, New Jersey. Each model A case requires 4 minutes of injection-moldingtime and 6 minutes of assembly time. Each model B case requires 3 minutes of injection-moldingtime and 8 minutes of assembly time. For next week, the Newark plant has 600 minutes ofinjection-molding time available and 1080 minutes of assembly time available. The manufacturingcost is $10 per case for model A and $6 per case for model B. Depending upon demand and thetime available at the Newark plant, DCI occasionally purchases cases for one or both models froman outside supplier in order to fill customer orders that could not be filled otherwise. Thepurchase cost is $14 for each model A case and $9 for each model B case. Management wants todevelop a minimum cost plan that will determine how many cases of each model should beproduced at the Newark plant and how many cases of each model should be purchased.(Hint: Letx11 be the number of cases of model A manufactured; x12 be the number of cases of model Apurchased; x21 be the number of cases of model B manufactured; x22 be the number of cases ofmodel B purchased.)
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