4 A beer company has divided Bloomington into two territories. If x1 dollars are spent on promotion...
Question:
4 A beer company has divided Bloomington into two territories. If x1 dollars are spent on promotion in territory 1, then 6x1/2 1 cases of beer can be sold there; and if x2 dollars are spent on promotion in territory 2, then 4x1/2 2 cases of beer can be sold there. Each case of beer sold in territory 1 sells for $10 and incurs $5 in shipping and production costs. Each case of beer sold in territory 2 sells for $9 and incurs
$4 in shipping and production costs. A total of $100 is available for promotion. How can the beer company maximize profits? If an extra dollar could be spent on promotion, by approximately how much would profits increase? By how much would revenues increase?
Step by Step Answer:
Operations Research Applications And Algorithms
ISBN: 9780534380588
4th Edition
Authors: Wayne L. Winston