A footwear manufacturer has to decide how many pairs of boots and shoes have to be produced to maximize profit. Demand for boots is x1 = 2,000 - 23.2p1, where p1 is the price for x1.

Demand for shoes is x2 = 3,200 - 76p2, where p2 is the price for boots. The constraints for the model are as follows:

c1 = 2.4x1 + 2x2 … 6,500 (leather)

c2 = 4.6x1 + 3.2x2 … 7,400 (laces)

c3 = 4.2x1 + 8.1x2 … 18,000 (soles)

Use Exhibit 10.9 and Excel Solver to solve this model to maximize the company’s total profit.

 LO.1