A wood-carving company has to decide how many chairs and stools have to be produced to maximize profit. Demand for chairs is x1 = 3,000 - 18.7p1, where p1 is the price for x1. Demand for stools is x2 = 3,100 - 39.8p2, where p2, is the price for boots. The constraints for the model are as follows:

c1 = 2.2x1 + 2.5x2 … 8,200 (paint)

c2 = 5.3x1 + 3.7x2 … 5,000 (cloth)

c3 = 4.5x1 + 8.2x2 … 14,600 (wood)

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

 LO.1