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A Company produces red and blue pens, whose unit production cost is 15 cents (including labor and raw material). The Company incurs a daily fixed
A Company produces red and blue pens, whose unit production cost is 15 cents (including labor and raw material). The Company incurs a daily fixed cost, amounting to $1000, to run the plant, which can produce at most 8000 pens per day in total. The blue pens sell for 25 cents, whereas things are a tad more complicated for the red ones. On a daily basis, the first 5000 red pens can be sold for 30 cents each, but additional ones can be sold for only 20 cents. Find how many red and how many blue pens we should produce each day.
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