P&B corporation manufactures, assembles, rebuilds material handling equipment used in warehouses and distribution centres. One product, called a Lift-Master, is assembled from four components: a frame, a motor, two supports, and a metal strap. P&B production schedule calls for 5,000 Lift-Masters to be made next month. P&B purchases the motors from an outside supplier, but the frames, supports, and straps may either be manufactured by the company or purchased from an outside supplier. Manufactured and purchase costs per unit are given in Table 1.
Three departments are involved in the production of theses components. The time (in minutes per unit) required to process each component and the available capacity (in hours) for the three departments are given in Table 2.
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