Free Wheelers, Inc. makes spokes and rims for mountain bike wheels. Recently, the firm has also started selling assembled wheels.
Each spoke requires 0.04 hours of machine time and 0.01 hours of labor, and costs $0.05 to make. Each rim requires 0.6 hours of machine time and 0.5 hours of labor, at a cost of $4.00.
An assembled wheel requires one rim and 72 spokes. Assembling a wheel takes 1.2 hours of labor, in addition to that needed to make its rim and spokes; no further machine time is needed. The assembly process also incurs additional direct costs of $11.00.
Up to 378 hours of machine time and 267 hours of labor are available per week.
Assembled wheels sell for $50.00. Spokes not used to make assembled wheels can be sold for $0.10 each. Similarly, rims not used in assembled wheels can be sold for $10 each. Assume that, at these prices, the firm can sell all the products it can produce.