A young firm has been surprisingly successful over the last year selling two models of home computer and now find themselves in the enviable position of being able to sell all that they can produce. Unfortunately, however, this growth has severely strapped not only the firm's manufacturing capacity, but also the firm's ability to finance itself. Capacity, price, and cost data are given below:
Production time available in the coming quarter is 5000 hours in fabrication, 8000 hours in subassembly, and 4000 hours in assembly.
The company can finance its production through two sources; (1) internal funds ($150,000 available for the coming quarter) and (2) short-term loan. The bank will loan the firm up to $100,000 per quarter at 10% as long as the company's acid test ratio is at least three to one, where the acid test ratio is defined as
Formulate this problem as a linear program.