Kentwood Electronics manufactures three components for entertainment systems: DVD players, equalizers and stereo tuners

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 Kentwood Electronics manufactures three components for entertainment systems: DVD players, equalizers and stereo tuners. The wholesale price and manufacturing cost of each item are given in the following table: component wholesale price manufacturing cost DVD player $150 $75 Equalizer $85 $35 Stereo tuner $70 $30 Each DVD player requires 3 hours of assembly; each equalizer requires 2 hours of assembly; and each tuner requires 1 hour of assembly. However; the company manufactures these products in batches of 150 – partial batches are not allowed. The marketing department believes it can sell no more than 150,000 DVD players; 100,000 equalizers; and 90,000 stereo tuners. It expects demand for at least 50,000 of each item and wants to meet this demand. If Kentwood has 400,000 hours of assembly time available, how many batches of DVD players, equalizers, and stereos tuners should it produce in order to maximize profits while meeting minimum demand figures supplied by marketing? The book’s hint: Let your decision variables represent the number of batches produced. Part a: formulate an ILP for this problem. Part b: Implement your model in a spreadsheet and solve it. Part c: What is the optimal solution?

Age in years	0-1	1-2	2-3	3-4	4-5
Poerating Cost	$8000	$9100	$10700	$9200	$11000
Trade-in Value	$14000	$9000	$6000	$3500	$2000