1. [10 pts.] Alpine Attic is the charity sponsored by local Episcopal churches in Denver, Colorado.
Literally thousands of items, including televisions and stereos, are donated each year, most in need of repair. When Alpine Attic receives either a television or a stereo, it determines whether it can be sold “as is” or should be scrapped for parts. Those not sold “as is” are sent directly to
JKL Electronics, whose owner, John K. Lucas, is a deacon at St. Paul’s Episcopal Church. In addition to his primary business, each month John donates 45 hours of an electrician’s time and
30 hours of a technician’s time to rebuild and test televisions and stereos for Alpine Attic. In addition to a tax write-off, he feels rewarded by helping out his church.
The recycled televisions and stereos typically sell for $50 and $30 each at the Alpine Attic Thrift
Store. Each recycled television averages 90 minutes of an electrician’s time to rebuild and 30 minutes of a technician’s time to test, whereas each stereo averages 30 minutes of an electrician’s time to rebuild and 60 minutes of a technician’s time to test. What is the best use of the electrician’s and technician’s time to help Alpine Attic realize its optimal profit each month?
2. [15 pts.] Intronix uses copy editors, computer graphics specialists, and Java programmers to produce ads for magazines and the Internet. The average new ad for magazines typically requires 180 hours of a copy editor’s time and 135 hours of a computer graphics specialist’s time, whereas ads produced for the Internet require 35 hours of copy editor time, 195 hours of computer graphics time, and 60 hours of a Java programmer’s time.
Lassie Foods, a dog food manufacturer, has hired Intronix to produce adds in the next four weeks. Although currently it considers magazine ads 3 times more valuable than
