The Apex Television Company has to decide on the number of 27- and 20-inch sets to be produced atone of its factories. Market research indicates that at most 40 of the 27-inch sets and 10 of the 20-inch sets can be sold per month. The maximum number of work-hours available is 500 per month. A 27-inch set requires 20 work-hours and a 20- inch set requires 10 work-hours. Each 27-inch set sold produces a profit of $120 and each 20-inch set produces a profit of $80. A wholesaler has agreed to purchase all the television sets produced if the numbers do not exceed the maxima indicated by the market research.
A machine shop purchased one drilling machine and two lathes of different capacities. There are 4 locations A, B, C, D for installing these machines. The installation costs and materials handling costs are variable according to the location of each machine and are given in the table below. There is a restriction that the drilling machine can not be installed at location.