A company manufactures three products: A, B, and C. Each unit of product A requires 1 hr of engineering service, 10 hr of direct labor, and 3 lb of material. To produce one unit of product B requires 2 hr of engineering, 4 hr of direct labor, and 2 lb of material. Each unit of product C requires 1 hr of engineering, 5 hr of direct labor, and 1 lb of material. There are 100 hr of engineering, 700 hr of labor, and 400 lb of materials available. The cost of production is a nonlinear function of the quantity produced as shown below:
Formulate a mixed-integer program to determine the minimum-cost production schedule.